Sign InMeta Stock Shows Volatility Amidst Tepid Recommendation from Analysts
Summary
Meta Platforms, Inc. (META) closed at $300.31 on September 15, 2023, experiencing a 3.66% decrease and higher trading volume, indicating a potential short-term recovery opportunity but the stock may fluctuate between the support and resistance levels due to uncertainty regarding its plans for WhatsApp and AI pursuits.
Technical Analysis
Meta Platforms, Inc., under ticker META, closed at $300.31 on September 15, 2023. This reflects a decrease of $11.41 (3.66%) from the previous trading session. The trading volume reached 26.47 million shares, which is above META's average volume of 23.59 million shares.
The stock's 52-week high and low are $326.20 and $88.09, respectively. The 50-day moving average stands at $301.95, which is slightly higher than the last closing. The 200-day moving average is notably lower at $221.75, implying an overall upward trend in the recent months. The RSI14 indicator is at 62, signifying a fairly neutral momentum.
The support and resistance levels are $291.99 and $309.34, respectively. Today’s trading range was $298.75 to $312, showing that the stock fluctuated between the support and resistance levels. The MACD (3-month) is -1.83, suggesting a bearish signal on a short-term basis.
Fundamental Analysis
Meta Platforms, Inc. has a market capitalization of $772.75 billion. The company's earnings per share (EPS) stands at $8.86, and the price-to-earnings (PE) ratio is 33.9, implying it might be overvalued compared to the sector average.
The discounted cash flow (DCF) valuation shows a price estimate of $305.74, slightly higher than its closing price. Analyses indicate a consensus target price of $251.07, much lower than the current price. Judging from this data, META seems to be trading above its intrinsic and targeted values.
Interestingly, the majority of analysts suggest a ‘Buy’ rating with 36 analysts recommending 'Buy', 1 recommending 'Strong Buy', 8 recommending 'Hold', and only 1 suggesting 'Sell'.
Consideration of Recent News
News surrounding Meta reveals a prediction for it to emerge as a significant player in AI, potentially joining Apple and Microsoft in the $2 trillion market cap club by 2033. This can be a positive catalyst for the long-term growth of the company.
However, recent developments also report that the company has decided not to monetize WhatsApp with ads. This decision could potentially be due to increasing restrictions on personal data usage by companies across different countries. This may have contributed to the stock's recent pullback.
Short-Term Prediction
For the next trading day, on September 18, 2023, the stock could remain volatile considering its Average True Range (ATR) of $3.01, though it may initially show tentative signs of recovery close to the $305.74 DCF price estimate given the neutral RSI.
Weekly Prediction
On a weekly time scale, readability of the company's plans, especially regarding WhatsApp and AI pursuits, could significantly impact the stock's trajectory. Given the company's high volatility, it's likely the stock price may fluctish between its support and resistance levels ($291.99 and $309.34).
Evaluation
At present, considering both the technical and fundamental factors along with recent developments, the evaluation suggests a 'Hold' for Meta stock. The current price level seems higher than its intrinsic and estimated target values. However, the company's long-term growth potential in AI and its vast user base make it a valuable asset for the future. Despite short-term uncertainties, the stock holds great potential in the long run, which may be worth considering for investors with a longer investment horizon.
