Meta Platforms (META.US) drops 5% today and is one of the worst performing S&P 500 companies. This is the biggest single-day drop for the company since October 2023. The drop comes after Donald Trump, former US president and front-runner to be Republican candidate in this year's presidential elections, gave an interview with CNBC. Trump said during the interview that while there is a lot of good and there is a lot of bad with TikTok, he is against banning the social media platform as it would benefit Facebook. Trump said he considers Facebook 'to be enemy of the people'. This is a sharp U-turn from time when Trump held US President's office and threatened to ban TikTok from US markets.
While Trump comments are a company-specific reason for the move lower in Meta shares today, it should be said that weakness can be spotted in a broader tech sector. Sentiment towards tech shares deteriorates as many start to be concerned with Nvidia's recent price action, especially the reversal we have seen on Friday.
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Open account Try demo Download mobile app Download mobile appTaking a look at Meta Platforms chart (META.US) at H1 interval, we can see that the stock launched today's trading lower and continued to drop during the first hours of the cash trading session. Declines seem to have been halted at the $480 support zone, at least for now. This zone saw some price reaction over the past month or so. An attempt to recover can be spotted at press time. With price approaching a short-term swing level in the $490 area.
Source: xStation5
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