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Meta's Stock May Plunge Following Results
2026-04-28 · via All Articles on Seeking Alpha

Summary

  • Meta Platforms, Inc. has surged nearly 30% since late March, but options positioning and technicals suggest downside risk post-earnings.
  • Despite strong Q1 revenue growth expectations, META's earnings growth is muted, and operating expenses plus CapEx are set to rise sharply by 2026.
  • Implied volatility is elevated, and options are skewed bullish, setting the stage for a volatility collapse and potential sharp stock drop after results.
  • Unless META delivers exceptional results and clears $700, technical and options flows indicate the path of least resistance is lower.
  • Looking for a helping hand in the market? Members of Reading The Markets get exclusive ideas and guidance to navigate any climate. Learn More »
Big Tech CEOs Testify At Senate Judiciary Committee Hearing

Anna Moneymaker/Getty Images News

Meta Platforms, Inc. (META) has surged nearly 30% since late March. Now, the moment of truth comes. When the company reports results on April 29, the risk isn't whether the results are good

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This report contains independent commentary to be used for informational and educational purposes only. Michael Kramer is a member and investment adviser representative with Mott Capital Management. Mr. Kramer is not affiliated with this company and does not serve on the board of any related company that issued this stock. All opinions and analyses presented by Michael Kramer in this analysis or market report are solely Michael Kramer’s views. Readers should not treat any opinion, viewpoint, or prediction expressed by Michael Kramer as a specific solicitation or recommendation to buy or sell a particular security or follow a particular strategy. Michael Kramer’s analyses are based upon information and independent research that he considers reliable, but neither Michael Kramer nor Mott Capital Management guarantees its completeness or accuracy, and it should not be relied upon as such. Michael Kramer is not under any obligation to update or correct any information presented in his analyses. Mr. Kramer’s statements, guidance, and opinions are subject to change without notice. Past performance is not indicative of future results. Neither Michael Kramer nor Mott Capital Management guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment commentary presented in this analysis. Strategies or investments discussed may fluctuate in price or value. Investments or strategies mentioned in this analysis may not be suitable for you. This material does not consider your particular investment objectives, financial situation, or needs and is not intended as a recommendation appropriate for you. You must make an independent decision regarding investments or strategies in this analysis. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Before acting on information in this analysis, you should consider whether it is suitable for your circumstances and strongly consider seeking advice from your own financial or investment adviser to determine the suitability of any investment.

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