Facebook Stock tumbled in Thursday's trading session after lower guidance and a miss on earnings. That being said, it still remains a solid stock fundamentally.

Overview

Meta Inc (NASDAQ: FB) is a US-based tech company that owns, Facebook, Whatsapp, and Instagram along with a few other large social media companies. The earnings report came out on Wednesday and saw the stock tank by 25%. This is the biggest 1-day decline ever for Meta. Could it be an issue?

Financials

From a financial aspect, the company is still strong and fundamentally nothing has really changed. The total market cap is $660bn. Looking at the numbers produced, Q4 revenue was $33.6bn with a profit after tax of $10.28bn. Full-year 2021 saw revenue grow from $85.9bn to $177.9bn. Profits from $29.1bn to $39.3bn. The balance sheet is okay too. Cash on hand was $16.6bn (down $900m). Total assets were up $6.6bn to $165.9bn. Total liabilities also grew from $31bn to $41.1bn. This gives Facebook a L/A ratio of 24.7%. In 2020 this was 19.%. So a downgrade in total positive assets, but still very good.

Technicals

From a technical picture, the stock looks hammered. RSI reads 24, which is the lowest level since 2012. The next levels of support sit at $210 followed by $150. To the upside, tough resistance sits at $285 followed by $320 and then $340. A punch above there could see facebook head towards $400 a share.

Summary

Overall Meta is a strong business. Its risk to invest more into the Metaverse as its known, if proven successful could be amazing for the future outlook. The userbase of Facebook has declined slightly and it is losing users to TikTok, but as technology advances Meta is at the forefront. They have billions of dollars, and billions are users. They can create a product and market it for free to the world. We have a Youtube Video here too.