Artem Voloskovets
⬤ META shares kept sliding this week, hitting a valuation point that's caught the market's attention. The stock now trades at 20 times earnings—the lowest trailing P/E multiple among big tech names. Price is consolidating around $589, close to the 0.618 retracement zone, with heavy trading volume concentrated in this range.
⬤ The valuation gap between META and its peers is striking. NVIDIA trades near 43.1 P/E, Apple around 35.6, Microsoft near 33.0, and Alphabet at roughly 28.5. META, at 20.4, clearly stands alone at the bottom. The stock dropped sharply from the mid-$700s to the high $500s, with heavy selling volume marking this decline. The lower valuation combines compressed share prices with strong earnings performance, creating a notable disconnect between META and other tech giants.
⬤ META is trading within a thick volume zone between $550 and $620, showing interaction with an important liquidity area. Activity around the 0.618 Fibonacci level suggests short-term uncertainty as the stock searches for support after its extended pullback. While the trend from April through October was strongly bullish, recent weakening momentum signals a shift. Still, META's earnings multiple remains conservative compared to premium-valued peers like NVIDIA and Apple.
⬤ The valuation dynamics matter because META's discount within big tech could influence broader sentiment around growth stocks. Stabilization near current levels may reshape how the market views risk across large-cap technology names. If META holds around its low multiple, it could shift sector expectations, especially as earnings, liquidity zones, and valuation spreads become increasingly central to market direction.
Artem Voloskovets
