• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock META Stock in Limbo: What You Need to Know Before the Next Big Price Swing
Stock

META Stock in Limbo: What You Need to Know Before the Next Big Price Swing

by April 19, 2024
by April 19, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Meta Platforms Inc. (META), the social media giant formerly known as Facebook, has been in tight consolidation at the top of its range for a little over a month. Following a 23% rise in February after its Q4 earnings, trading volume for the stock has declined significantly. Market participants are now looking for any catalyst that could guide the stock’s movement.

Analyst Price Predictions Show Wide Variation

If you’re undecided as to whether you’re bullish or bearish on Meta, you’re not alone, as the blogosphere will show you a wide range of analyst price predictions for the next 12 months. The highest price target is at $610, average consensus is at $489, and the lowest price targets average around $272.

Yet, consensus ratings lean from “Buy” to “Strong Buy.”

What’s New with Meta? It’s New AI Rollout

The bullish outlook is driven by its new AI app, Meta AI, which aims to boost user engagement across WhatsApp, Instagram, Facebook, and Messenger by providing advanced AI capabilities such as animations and image generation. Supported by partnerships with Alphabet (GOOGL) and Microsoft (MSFT), Meta AI will likely see ad revenue growth, prompting analysts to raise their stock price targets.

A Macro Look at Meta

CHART 1. WEEKLY CHART OF META. Hovering at record highs, Meta’s uptrend appears to be leaning toward the parabolic side of things, prompting investors to wonder whether such a trajectory is sustainable. The 13-week SMA represents one quarter.Chart source: StockCharts.com. For educational purposes.

Having gone the distance to bounce off its 2022 lows, Meta began outperforming the S&P 500 just this year, now besting the broader market by 37%.

However, before even matching the broader market. Meta’s technicals—as shown by its StockCharts Technical Rank (SCTR) score—have been remarkably strong (with a score above the 90-line) since the end of 2022.

The 13-week simple moving average, representing one quarter, appears to be a consistent proxy for support and resistance. You will want to watch that line when looking at Meta using a weekly chart.

A Near-Term View of Meta’s Price Action

Analyst consensus may be largely bullish, and the Meta AI rollout is prompting Wall Street to raise price targets upward, with some going as high as $610. However, right now, we’re seeing a rectangle pattern and, technically, Meta’s price can go either direction, at least in the near term (see chart below).

CHART 2. DAILY CHART OF META. The momentum, or lack thereof, says a lot. Investors are probably waiting for the META’s next earnings report, scheduled for April 24.Chart source: StockCharts.com. For educational purposes.

Mind the Rectangle: If you’re looking to take action upon a breakout, set a price alert at $481 near the bottom and $531 near the top of the formation.

Mind the Momentum: Fundamental forecasts may be bullish, but the Chaikin Money Flow (CMF) will tell you that selling pressure is currently far greater, though there isn’t that much activity, bullish or bearish, taking place right now. And why not?

Earnings Coming Up: Meta’s last earnings report catapulted the stock to record highs. The next earnings date is on April 24. You’ll likely see more activity occurring close to Meta’s earnings date. So pay close attention to this.

Support Levels: If Meta’s earnings are so-so but not bad enough to invalidate its longer-term bullish thesis (AI rollout), or if its price breaks below the current rectangle formation and the 50-day simple moving average (causing it to trade technically toward the downside), then note the wide support range projected via the Ichimoku Cloud. If the bullish fundamental thesis holds out, buyers will likely jump in within the cloud.

The Bottom Line

Meta’s long-term prospects look bullish, much of which is being driven by the optimistic expectations surrounding its AI rollout, Meta AI. Still, it seems poised for a correction, though its chart formation indicates it can go either way. Watch out for any catalysts that could influence the stock’s trajectory as the next earnings date approaches. And if Meta does take a dip, keep an eye on that cloud, should the bullish fundamental outlook persist.

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
  • Gold and Silver Set to Smash Records: Could 2024 Be Their Biggest Year Yet?
  • SNAP’s Stock Price Snaps Out Above Bollinger Band — Could This Be a Profitable Opportunity?
  • Watch These Critical Points in MACD Crossover Signals
  • Long-term Breadth Indicators Hit Moment of Truth
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Mortgage rates are now at the highest level of the year and could still climb
next post
Netflix Gets Island Reversal On Earnings

You may also like

Is the S&P 500 Forming a Bear Flag Pattern?

May 8, 2024

DecisionPoint Trading Room: Narrow Advance a Big Problem!

February 5, 2024

Sector Spotlight: Sector Rotation Suggests Market Ready to Move

April 18, 2023

Stock Market Hits Record Levels: Prepare for What Inflation Can...

November 9, 2024

Here’s My Most-Likely Scenario for QQQ

September 13, 2024

Important Inflection Point in FXI: Is It Time To Accumulate?

April 17, 2024

GNG TV: Does a BIG Changing of the Guard Signal...

August 3, 2023

These Signals Will Improve Your Timing!

March 14, 2024

Magnificent 7 Not All Magnificent!

February 29, 2024

Block and Loaded: Targeting Gains in SQ

January 3, 2025

    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

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

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

      June 27, 2024 2,630 views
    • 2

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

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

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

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

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

      June 27, 2024
    • 2

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

      August 9, 2024
    • 3

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

      June 25, 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

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    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

    The Bears Are On Life Support...

    March 23, 2023

    The Next Leading Indicator

    May 5, 2023

    Charting Forward: Opportunities You Can Seize...

    August 30, 2024
    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