Meta Platforms, Inc. (NASDAQ: META) Shows Bullish Signs Despite Overbought RSI14 Indicator

Technical Analysis

Yesterday, Meta Platforms, Inc. (NASDAQ: META) closed at 284.33 USD, with a growth of 1.19% (3.33 USD). The daily low was 276.22 USD while the high reached 284.8 USD. The company's current market capitalization stands at approximately 728.66 billion USD after trading 19.60 million shares during the day. The traded volume is below the average daily volume of 22.95 million shares. The RSI14 indicator is at 76, suggesting that META stock may currently be overbought.

META is trading above both its 50-day moving average of 242.02 USD and its 200-day moving average of 170.04 USD, which is a bullish sign. The 3-month MACD is positive at 13.34, supporting upward momentum.

Fundamental Analysis

Meta Platforms, Inc. reports earnings per share (EPS) of 8.04 USD and a price-to-earnings (PE) ratio of 35.36. With 2.56 billion shares outstanding, the company is expected to release its next earnings announcement on July 25, 2023.

According to the discounted cash flow (DCF) analysis, META's intrinsic value is estimated at 289.76 USD per share. This suggests that the stock is slightly undervalued at its current price. The consensus target price for META is 231.48 USD, with a target high of 466 USD and a target low of 105 USD.

Recent News and Predictions

Cathie Wood, a renowned fund manager, has reportedly taken long positions in Meta Platforms, suggesting confidence in the stock's performance. Investors should consider this information when evaluating META's potential for future growth.

The San Francisco summit held discussions regarding artificial intelligence's (AI) opportunities and risks, with President Joe Biden in attendance. This event could significantly impact companies like Meta Platforms, given their involvement in the AI industry.

Based on technical and fundamental aspects, as well as recent news, the stock is likely to experience continued upward momentum. Therefore, our prediction for META's stock price on the next trading day, June 21, 2023, is 288.00 USD. We can also expect the stock price to reach approximately 295.00 USD by the end of the upcoming week.

Conclusion

After reviewing the technical and fundamental data, as well as recent news events, we consider Meta Platforms, Inc. a BUY. The stock's current price is slightly below its intrinsic value according to the DCF analysis, and strong technical indicators support continued growth. Additionally, Cathie Wood's reported investment in META suggests a positive outlook on the company.