Sign InSummary
Meta Platforms, Inc. (META) closed at $288.73 on June 23, 2023, with a 1.35% gain and its technical and fundamental analysis suggests a bullish momentum in the short term, however, investors should remain cautious due to the overbought Relative Strength Index (RSI) and potential market pullbacks.
Technical Analysis
Meta Platforms, Inc. (META) closed at $288.73 on June 23, 2023, with a 1.35% gain. The stock hit its 52-week high of $289.67 during the trading session, while the 52-week low stands at $88.09. The trading volume reached 50.97 million shares, significantly higher than the average volume of 22.86 million shares. META's market capitalization is currently $747.01 billion.
The 50-day moving average stands at $247.64, and the 200-day moving average is $172.51, indicating an overall uptrend. Furthermore, the Relative Strength Index (RSI) of 70 suggests that the stock is currently in the overbought territory. The MACD (3-month) is 12.33, which also supports the bullish momentum in the price movement.
Fundamental Analysis
META reported an earnings per share (EPS) of $8, with a price-to-earnings (PE) ratio of 36.09. The company has 2.59 billion shares outstanding. The next earnings announcement is scheduled for July 25, 2023.
Analysts' consensus target for META stock is $231.48, with a median target of $221, and a target range between $105 and $466. The Discounted Cash Flow (DCF) valuation stands at $294.16.
News & Events
Recent news includes discussions about the company's commitment to innovation and the preservation of elections. Meta is prioritizing growth and efficiency in 2023, which could positively impact its stock performance. Additionally, the company is involved in various partnerships and collaborations, which may influence its future outlook.
Stock Price Prediction
Based on the technical and fundamental analysis, META is expected to continue its bullish momentum in the short term. For the next trading day, June 26, 2023, the stock may approach or surpass the 52-week high mark of $289.67. In the coming week, the stock price could trend upwards and target the DCF valuation of $294.16.
However, investors should remain cautious, as the overbought RSI and potential market pullbacks could lead to corrections in the stock price.
Final Evaluation
Considering the technical and fundamental factors, along with the recent news and events, META's stock can be categorized as a Hold. The company's solid growth prospects, innovative approach, and increasing market presence provide potential for further gains. Nevertheless, the current overbought status and risk of market fluctuations suggest that it may not be the best time for new investors to enter the stock. Existing investors could hold their positions and keep an eye on the market developments and company performance before making any decisions.
