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Meta Platforms (META) is doing what it does best — creating drama where there shouldn’t be any.
Here’s what happened: The company delivered a pretty solid earnings report. Revenue was up, user numbers climbed higher, and even their Reality Labs division — you know, the one burning cash on the metaverse — actually beat expectations. So naturally, the stock got punched in the face.
Why? Because Meta got slapped with a one-time non-cash tax charge of $16 billion — yes, with a B — apparently related to tax law from the Trump era. Now, even though it’s a one-time thing and doesn’t affect cash flow, it made their earnings per share look absolutely terrible. And the market, well, it loves a good panic.
But here’s the thing — people are still scrolling through Instagram, still jumping on Facebook, and the company’s still printing money. The underlying business hasn’t changed. This is classic Wall Street overreaction to an accounting footnote.
The Technical Picture Shows Classic Three-Wave Correction
From a technical standpoint, this looks like a very aggressive three-wave correction pattern — an aggressive A wave, followed by an aggressive B wave, and now potentially completing the C wave.
Here’s what makes this interesting: We’re down in the vicinity of a potential bottom if this is a three-wave structure that’s complete. If you’ve been shorting Meta expecting a bigger collapse, this is exactly the zone where you need to be careful. These waves have been so aggressive they don’t even show clear subwave patterns — which is typical when selling pressure hits hard and fast.
Could it go deeper? Sure. We could see a move all the way down to the $600 level, or even find support around $580. That zone could actually set up an even bigger bounce opportunity if we get that final flush lower. But if we break below $580, we’d likely see a trip down toward the $540 area.
The Buy-the-Dip Opportunity — If You Can Handle the Drama
This is a classic buy-the-dip scenario. The underlying business is strong, but the stock is trading below support levels. You might want to wait until Meta actually starts turning higher before jumping in, but the setup is there.
The key question is whether you have the stomach for Meta’s particular brand of volatility. Because if there’s one constant with this company, it’s that there’s always some drama. One quarter it’s Reality Labs burning billions. Another quarter it’s regulatory concerns. This time it’s a $16 billion tax surprise from years past.
But that’s also what creates opportunity. When a fundamentally sound company gets hammered over something that doesn’t affect its actual cash-generating ability, smart traders pay attention. The panic creates the discount.
Just make sure you’re watching those support levels carefully. This isn’t a blindly jump in and hope situation. It’s a wait for confirmation, watch the technicals, and position accordingly type of trade.
Jeffry Turnmire
Jeffry Turnmire Trading
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I’m just a regular dude in Knoxville, Tennessee: a husband, father, civil engineer, urban farmer, maker and trader.
I’ve been at this trading thing with real money for 20-plus years, and started paper trading over 35 years ago. I have a knack for making some epic predictions that just may very well come true. Why share them? Because I like helping other people — it’s the Eagle Scout in me.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. I Just Issued a Bone-Chilling Market Warning!
With the data pointing to a potential Greater Depression… I recently went on camera to hold an urgent briefing…
And to show you how you can prepare your portfolio for what’s coming ASAP.
The crisis unfolding in the charts looks even more alarming than the COVID crash…
