Can META Go Higher From Here?

Can META Go Higher From Here?

Meta stock has surged impressively, boasting a remarkable gain of over 40% year to date and a staggering 170% surge over the past 12 months.

However, a negative reversal observed on Friday hints at a potential pullback.

The stock witnessed a significant earnings-driven surge on Feb. 2, rallying over 20% and maintaining its position above the short-term 10-day moving average, possibly signaling a continuation alert.

During a recent Morgan Stanley industry conference, Facebook head Tom Alison outlined Meta’s strategic utilization of generative AI models across its ecosystem. Meta’s recent gains have been largely fueled by AI initiatives, with substantial investments in computing chips from Nvidia and other suppliers to bolster its AI capabilities.

Notably, Meta primarily generates revenue through ad sales on its social media platforms. The Wall Street Journal reported that e-commerce platform Temu, launched in 2022 by China-based PDD Holdings, spent nearly $2 billion on Meta ads last year.

Investors reacted positively to Meta’s recent earnings report, which showcased impressive EPS growth of 203% and revenue growth of 25%. The company exceeded expectations on both fronts, sparking a post-earnings rally in Meta stock.

But has META become a little overbought and due for a pullback where more inviting entry prices might be found?

This video highlights some support areas where favorable prices might be found for new entries or additional shares to be scooped up.

Click here to view the video on YouTube or click the image below: