Sign InMeta Platforms, Inc. Stock Holds Steady Ahead of Earnings Announcement
Summary
Meta Platforms, Inc. (META) ended the last trading day at $312.55 with a small slide of 0.46%, and with the upcoming earnings announcement on October 25, 2023, the stock price could see significant volatility but is expected to have upward movement if the earnings surpass expectations, leading to a recommendation to Buy.
Technical Analysis
Meta Platforms, Inc. (ticker: META) ended the last trading day, October 24, 2023, at $312.55, a small slide of 0.46% from the previous close. The stock price fluctuated between $310.63 and $318.35 over the day. The volume of shares traded was 5.43 million, notably lower than the average volume of 20.80 million. The company's market cap stood at $789.86 billion. The volatility of the stock, measured by the Average True Range (ATR), was 2.84.
The stock's 50-day moving average was $303.22, while the more extensive review of 200-day moving average was $248.41. The MACD, a popular trend-following momentum indicator, for META was positive at 7.36 signaling the bullish trend in the past three months.
The Relative Strength Index (RSI), a momentum oscillator that measures the speed and change in price movements, rated META at 55, suggesting it is neither overbought nor oversold at the current price.
In terms of price points, there's a support level at $311.71 closely followed by a stop-loss point at $297.16, while the first line of resistance is seen at $318.6.
Fundamental Analysis
META trades on the NASDAQ exchange, with earnings per share (EPS) standing at $8.60, creating a price-to-earnings (PE) ratio of 35.69. While the PE is higher than the industry average, it is essential to note that high growth companies often come with a higher PE ratio. The company has a vast number of shares outstanding, totaling 2.57 billion.
The discounted cash flow (DCF) is $312.39, closely aligning with the stock's current price, suggesting the stock is fairly valued. META's year-to-date low and high levels are $88.09 and $330.54, respectively, showing an impressive upward momentum.
Referring to the predictions of financial analysts, the stock's target price high is $466, and low is $105. However, the consensus leans towards a target price of $256.52, slightly below the current level. A majority of 37 analysts recommend a "buy," while eight suggest "hold," and only one recommends selling the stock.
Important News and Events
Earnings will be announced on October 25, 2023, which will undoubtedly impact the stock price. The market expectancy is high, especially given the recent impressive reporting from other tech titans Google and Microsoft.
Prediction and Recommendation
Given the technical and fundamental indicators, the price of META stock would likely remain stable in the next trading session on October 25, 2023, potentially seeing slight movements based on anticipation of the earnings announcement. In the next week, the stock price could witness significant volatility because of the post-earnings reaction. It is expected some upward price movement if earnings surpass current expectations.
Finally, based on the comprehensive review and the consensus among financial analysts, the recommendation for Meta Platforms, Inc. (META) leans towards a "Buy". However, keep in mind that potential investment decisions should also take into account other market-wide variables, the investor's risk tolerance, and investment horizon.
