Meta Bulls Await Earnings Surge: Is $620 Next Stop?

Meta Platforms Inc (NASDAQ:META) is set to announce its third-quarter earnings on Wednesday, October 30. Analysts on Wall Street are anticipating a strong performance, expecting earnings per share (EPS) of $5.24 and total revenues reaching $40.27 billion after the market closes.

Looking back, Meta's stock has surged dramatically, with an impressive increase of 94.9% over the past year and a 70.35% rise year-to-date. This remarkable growth captures the interest of investors, leading many to speculate about the company’s upcoming results.

Now, let’s analyze the technical indicators for Meta stock and see how it aligns with Wall Street's expectations.

Technical Analysis of Meta Stock

The charts reveal a mainly bullish sentiment regarding Meta's stock price, indicating potential gains for investors despite facing minor short-term hurdles. As of the latest trading session, the stock was priced at $590.03, showing strong buying interest.

Meta is trading above several key moving averages, including the five, 50, and 200-day exponential moving averages. This positioning is a positive sign of market sentiment. The price also remains above the eight-day simple moving average (SMA) of $575.82 and the 20-day SMA of $581.52, signaling robust short-term momentum.

Furthermore, with a 50-day SMA settled at $553.40 and a 200-day SMA at $498.76, the stock's performance indicates strong momentum and a favorable outlook for long-term investors. The Moving Average Convergence Divergence (MACD) is currently at 6.07, further supporting this bullish trend. Investors should keep an eye on the rising Relative Strength Index (RSI) at 61.61, indicating the stock may be approaching overbought territory, and consider potential short-term pullbacks as potential buying opportunities.

Analyst Ratings and Price Targets

In terms of analyst opinions, the consensus rating on Meta stock is currently a "Buy". Analysts have set an average price target of $620.05, which reflects an upside of over 14% from its current trading level. Recent evaluations from reputable firms such as Bernstein, Jefferies, and TD Cowen suggest that while the stock is at $590.32, there is significant room for growth, with forecasts pushing the average target to $675.

This optimism among analysts showcases their confidence in Meta's upcoming performance as the company prepares to unveil its earnings report, reinforcing the expectations of a continued upward trajectory in more ways than one.

Conclusion

As Meta approaches its third-quarter earnings release, the bullish sentiment and strong technical indicators have investors looking forward to potentially favorable results. With solid expectations from Wall Street, all eyes will be on this tech giant to see if it can meet or exceed the anticipated figures, specifically whether it could reach the ambitious price targets set by analysts.

Meta, Earnings, Stocks