• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock This Stock Is Trending Higher: Why You Should Watch It
Stock

This Stock Is Trending Higher: Why You Should Watch It

by January 20, 2023
by January 20, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

If you’ve logged into your Facebook account recently, you may have noticed a bunch of targeted reels. No, it’s not TikTok. This just shows that Meta Platforms (META), parent company of Facebook, is rolling up its sleeves and getting aggressive in the advertising space. META has lost some of its competitive edge in the ad space, especially with the rise of larger players such as Amazon (AMZN) and Apple (AAPL), plus other short reel video platforms. But it’s still got a big player with a large user base.

META’s last earnings report was pretty dismal, sending its stock gapping lower to a level the stock hasn’t seen since 2016. The company also announced job cuts and a major slowdown in ad spend. And let’s not forget the huge—we’re talking tens of billions of dollars—investment in the metaverse, which hasn’t shown any profits yet.

These factors didn’t go down well with META investors. But since reaching a low of around $88 last November, the stock has started to show some signs of recovery (see chart below). So far, in 2023, the stock price has been up around 13%. Last year was rough for META, as it was with other large-cap growth stocks. So a recovery, even if it’s slight, can be an encouraging sign. The big question is, will the recovery sustain? If it does, it could help the other players in the same space.

CHART 1: IS META A BUY? It may be too soon to tell, but after being beaten down so badly, it is starting to show signs of recovery. Earnings are coming up, which is likely to impact the stock’s price. Add to your ChartLists and watch patiently.Chart source: StockChartsACP. For illustrative purposes only.

What Has META’s Chart Got Going For It?

The 50-day moving average (MA) is trending higher and approaching the 100-day MA. When the 50-day MA crosses above the 100-day MA, you get a golden cross, which is generally an indication of a bullish move.The relative strength index (RSI) is approaching its overbought zone (upper sub chart). Watch for it to cross above it; if it sustains that level, that might mean the rally could continue, at least for some time. META’s relative performance against the S&P 500 index is hovering around the zero line. If the RS line (lower sub chart) starts to turn up and go higher, it would be another indication of the stock’s strength.

META is expected to report earnings on February 1, 2023. It’ll be interesting to hear if there’s any mention of what ad spending is likely to be in Q1 2023. Even the slightest sign of recovery is likely to give the stock price a boost.

It’s still too early to determine if the stock is a buy but it’s worth adding to your ChartLists. The stock price could go either way depending on its earnings report. As always, tread carefully, and if you do decide to add long META positions to your portfolio, think about how much risk you’re willing to take and place your stops accordingly.

Jayanthi Gopalakrishnan

Director, Site Content

StockCharts.com

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

You Might Also Like
  • Roblox Bounces Back: Is It Worth Buying?
  • The First Half of 2023 Was Very Bullish, But What Should We Expect in the Second Half?
  • What A Week! This Small Cap Party Might Just Be Getting Started
  • How to Find the Market’s Strongest Stocks in Just Four Clicks!
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Biden says ‘no regrets’ over classified document discovery handling: ‘Nothing there’
next post
Florida Supreme Court upholds state law banning local governments from implementing restrictions on guns

You may also like

Finding and Trading Instrument Bottoms

September 13, 2023

Week Ahead: While NIFTY Consolidates, Closing Above This Level Crucial...

December 28, 2024

Are the Magnificent 7 Still the Kings of Wall Street?

November 15, 2024

A Wild Ride in the Market

June 16, 2023

The Best Traders ALWAYS Cherry-Pick Their Setups

November 8, 2023

Sector Spotlight: When Stocks are Not Marked Down on Bad...

March 23, 2023

Jackson Hole Jay Doesn’t See His Shadow, Worst Market Weather...

August 23, 2024

Will QQQ Retest All-Time Highs By End of April?

March 21, 2025

Will Technology Drive S&P Higher in October?

October 3, 2024

A STRONG Week for Equities and Internet Stocks SOAR!

February 2, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • How to Find Compelling Charts in Every Sector

      July 10, 2025
    • White House accuses Powell of mismanaging Federal Reserve, citing headquarters renovation

      July 10, 2025
    • Italian chocolate giant Ferrero to buy Kellogg’s Froot Loops maker

      July 10, 2025
    • OpenAI to release web browser in challenge to Google Chrome

      July 10, 2025
    • Sports executive charged with bid-rigging in Texas arena project

      July 10, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,631 views
    • 2

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,919 views
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,607 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,577 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,449 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,171)
    • Investing (538)
    • Stock (2,662)

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • How to Find Compelling Charts in Every Sector

      July 10, 2025
    • White House accuses Powell of mismanaging Federal Reserve, citing headquarters...

      July 10, 2025
    • Italian chocolate giant Ferrero to buy Kellogg’s Froot Loops maker

      July 10, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,171)
    • Investing (538)
    • Stock (2,662)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Is It Time To SELL Your...

    July 13, 2024

    It’s GAME ON for These Stocks

    November 6, 2024

    Striking While The Iron Is HOT!

    October 15, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here