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Trends & Analysis
News

GBP/USD recovers following wage report

News

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News

Goldman Sachs shares surge after earnings beat

News

Keep an eye on these key S&P 500 levels

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US big banks report better-than-expected earnings

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Asset Watch

Should you like Meta Platforms this earnings season?

Tuesday, January 30, 2024

Quarterly results continue to hit the wire, and it’s a feast-or-famine market for the winners and losers. Netflix benefited from buoyant subscriber growth, while Tesla felt investors’ wrath once again.

 

But with Bank of America expecting Meta Platforms to shine in Q4, its team of analysts increased their price target from $405 to $425 on Jan. 25. They wrote:

 

“With a favorable macro backdrop for advertising, Reels contribution turning positive in 2024, a large messaging revenue ramp in progress, strong AI assets driving results, and still plenty of costs to cut if needed, analysts remain constructive on the stock.”

While the technical backdrop remains fruitful, you should monitor a few critical levels before deploying capital. For starters, Meta Platforms has broken out to new all-time highs, surpassing the peak set in late 2021. However, it’s prudent to wait for further confirmation, as one week’s close is not enough evidence for verification.

In contrast, Meta Platforms’ 20-week moving average (the blue line) acted as resistance throughout the 2022 collapse and has been reliable support during the 2023/2024 comeback.

If the stock can confirm the breakout and hold above $384, it could fuel further upside. If not, and an earnings miss leads to a breakdown, the 20-week MA near $334 could provide a great entry point.

So, will the breakout hold and help the stock surpass $400, or does it retest the 20-week MA before moving higher?


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