HomeMarket News"Meta Rises Before Earnings Release as Technical Indicators Suggest Buying Opportunities"

“Meta Rises Before Earnings Release as Technical Indicators Suggest Buying Opportunities”

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Meta Platforms Inc META is set to announce its fourth-quarter earnings on Wednesday, with Wall Street estimating earnings per share (EPS) of $6.77 and revenues of $46.99 billion after market close.

Over the last year, META stock has surged by 69.23%, with a year-to-date increase of 13.25%, reflecting the company’s stronghold in the digital advertising market. CEO Mark Zuckerberg has also been significantly active in political circles, which adds an intriguing aspect to the current corporate climate.

Meta’s Earnings Loom as Stock Price Hits New Highs

Zuckerberg’s New Role in Politics

Recently, Zuckerberg joined the Business Roundtable, a group representing major U.S. corporations, according to The New York Times. This move indicates a shift towards a more involved stance on policy decisions.

Traditionally, Zuckerberg was known for avoiding political engagement. However, he has recently become more vocal, forming connections with influential politicians and addressing regulatory challenges. This shift could significantly influence Meta’s strategy, especially as scrutiny of Big Tech is predicted to grow.

Next, let’s analyze what recent stock charts reveal about META and how its performance compares with Wall Street forecasts.

Positive Trends for Meta Stock Ahead of Q4 Results

META shares are currently enjoying a positive trend, priced at $679.27, and have consistently exceeded their five-, 20-, and 50-day exponential moving averages (EMAs)—a strong indicator of buying interest.

Screenshot 2025 01 28 at 11.03.38 PM

Chart created using Benzinga Pro

Currently, the eight-day, 20-day, and 50-day simple moving averages (SMAs) display positive signals, indicating strong upward momentum. Notably, the 200-day SMA at $538.09 illustrates that META stock has made significant gains since previous lows.

As of now, the moving average convergence/divergence (MACD) stands at 14.27, while the relative strength index (RSI) is at 72.39. This suggests a solid momentum favoring buyers. For investors, this could imply continuation of the rally; however, given the RSI’s overbought status, a slight pullback might be on the horizon. New investors should look for favorable entry points, while current stockholders should monitor profit-taking opportunities.

Analysts Forecast Growth for Meta

Recent insights from RBC Capital Markets emphasize the positive impact of DeepSeek AI advancements on various internet companies, including Meta. These AI developments are expected to improve content recommendations, audience targeting, and ultimately, revenue for advertising-focused businesses such as Meta, Pinterest Inc PINS, and Snap Inc SNAP.

Moreover, reduced infrastructure costs are likely to enhance earnings and cash flow for Meta, supporting its long-term growth strategy.

Ratings & Consensus Estimates: The consensus rating for META is classified as a Buy, with a price target set at $668.02. Recent ratings from JMP Securities, Rosenblatt, and Wedbush suggest an approximate 10.99% upside, leading to an average target price of $753.67.

META Price Action: On Tuesday, the stock was noted at $672.67, marking a 1.9% increase at the time of publication.

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