Meta Platforms Shows Bullish Momentum with Targeting Upside Potential in Market Growth

StockInvest.us, 1 month ago

Summary

On June 2, 2025, Meta Platforms, Inc. (META) closed at $670.90, reflecting strong bullish momentum and positioning the stock for potential gains towards $680–$690 in the upcoming trading sessions, backed by robust technical indicators and positive fundamental developments.

META Technical Analysis

Meta Platforms, Inc. (META) closed at $670.90 on June 2, 2025, showing a strong intraday gain of 3.62%. The price oscillated between $644.26 and $673.25, closing near the upper range, signaling bullish momentum. The 14-day RSI at 66 indicates the stock is nearing overbought territory but still has room for appreciation. Both the 50-day ($584.41) and 200-day ($594.37) moving averages lie well below the current price, affirming a strong uptrend. The MACD over the past three months remains robust at 41.15, supporting continued bullish price action. Average trading volume (17.65 million) outpaces the recent volume (6.82 million), suggesting moderate trading activity but potential for volume expansion in coming sessions. The ATR of 2.89 points to modest intraday volatility. Support is firmly established near $586, with no immediate resistance identified between current levels and the year high of $740.91, indicating potential to test higher levels.

For the next trading day (June 3, 2025), momentum and technical signals favor a continuation of upward movement, likely targeting $680–$690, assuming no adverse market shocks. Over the upcoming week, consolidation around $670 to $700 is plausible, with upside attempts toward the mid-$700s aligned with historical year highs and analyst target medians.

Fundamental Analysis

Meta’s market capitalization stands at approximately $1.68 trillion, placing it among large-cap tech leaders. The trailing twelve-month EPS of $25.58 yields a P/E ratio of 26.15, which is moderate relative to growth tech peers, suggesting the stock is fairly valued or slightly undervalued given growth prospects. Discounted cash flow valuation at $593.69 implies the stock is currently trading about 13% above intrinsic value, largely justified by growth and new initiatives but indicating stretched valuation requiring execution to maintain.

Recent news underscores Meta’s strategic pivot towards sustainable infrastructure with a multi-decade clean energy agreement purchasing nuclear power attributes from a 1.1 GW nuclear plant. This move is aimed at securing long-term stable energy costs and aligns with the company’s aggressive AI monetization efforts, reflecting an intention to reduce operational risks linked to energy supply variability. These factors contribute positively to long-term earnings stability and ESG appeal.

META Analyst consensus remains bullish, with 62 out of 73 surveyed rating the stock as a buy or strong buy and target prices ranging from $670 (low) up to $935 (high), consensus near $766, and median at $750, all above current levels. The next earnings release on July 30, 2025, could serve as a catalyst depending on AI revenue growth and operational efficiencies from clean energy investments.

Intrinsic Value and Long-Term Investment Potential

The DCF model places the intrinsic value at approximately $593.69, reflecting the present value of cash flows under conservative assumptions. The current price at $670.90 implies a premium justified by accelerated AI adoption and long-term cost savings from nuclear energy sourcing. Meta’s leading position in AI, coupled with energy security investments, supports sustained revenue growth and margin expansion over the next 3–5 years, making the stock favorable for long-term appreciation once near-term execution risk subsides. The absence of immediate technical resistance below the year high suggests room for momentum-led gains.

However, the relatively compressed margin between the DCF output and market price requires monitoring of execution on AI innovation and clean energy shifts, which are critical to justify the premium valuation sentiment.

Overall Evaluation

Meta presents a synthesis of strong technical momentum and fundamentally sound growth drivers anchored in AI innovation and sustainable energy integration. The stock trades above intrinsic value but within a reasonable premium supported by industry trends and strategic initiatives. Near-term trading favors continuation of the uptrend with upside potential toward $700+ levels. Over the medium to long term, structural investments and market positioning underpin growth and earnings resilience.

Given these factors, META aligns more closely with a Hold to Buy category: the technical setup favors buying interest, and fundamental catalysts remain intact, but the slight overvaluation relative to DCF and execution dependencies merit caution against aggressive accumulation at current peaks. Institutional and retail investors focused on technology leadership and ESG-forward companies would likely maintain positions or incrementally add on dips, while more risk-averse traders might await near-term consolidation or dips closer to intrinsic value thresholds near $590–$600.

Check full META forecast and analysis here.