Facebook Ends Below Key Level for First Time Since March
(Bloomberg) -- Facebook Inc. shares tumbled on Tuesday, with the social-media company ending below a key level for the first time in months in the wake of a disappointing forecast and quarterly report.
The stock fell 3.9% to $315.81. The stock ended at its lowest since May and also closed under its 200-day moving average for the first time since March. The day’s decline erased more than $48 billion in market value, while the stock’s 10-day historical volatility rose to 43.69, its highest since May.
With the day’s decline, Facebook is down more than 17% off a peak hit in early September, though it remains up nearly 16% for 2021.
In its results, Facebook reported revenue that missed expectations and gave a revenue forecast that was below the consensus. Despite the recent weakness in the stock, Wall Street analysts remain broadly positive on the company, citing its long-term prospects and valuation.
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