Meta Platforms (META): A Leading Force in AIKey Supporting Arguments
Deploying AI tools enhances user engagement, drives up ad revenue, and strengthens Meta’s profit margins.
Meta's in-house development of AI chips is poised to lower capital outlays associated with purchasing Nvidia chips and diminish the costs involved in developing proprietary AI models.
Meta's stock has approached a support level, suggesting a potential reversal in its price trajectory.
Investment Thesis
Meta Platforms (META) stands as one of the world’s largest technology companies, specializing in social media, digital advertising, and AI development. It owns major platforms like Facebook, Instagram, WhatsApp, and Messenger, which together engage over 3.3 billion users daily. While advertising remains its primary revenue stream, the company is strategically investing in emerging areas such as generative AI and augmented reality.
Continued Commitment to AI Development as a Key Growth Driver. Meta is strategically channeling investments into AI, spearheading the development of open-source Llama models and deploying generative content across its social platforms. These advancements are anticipated to enhance targeting precision and bolster user engagement, subsequently driving a surge in advertising revenue. In 2025, the company intends to allocate up to $65 billion toward AI infrastructure, reinforcing its leadership stature in the competitive AI market.
Focus on Proprietary AI Chips to Lower Capital Costs and Enhance AI Model Development. Meta has initiated trials of its proprietary AI training chip, marking a significant move toward minimizing reliance on suppliers like Nvidia. This new chip is tailored for specific AI tasks, offering enhanced energy efficiency over conventional graphics processing units. By developing its own chips, the company stands to lower expenses and potentially capitalize on the burgeoning demand for AI processing by selling surplus capacity.
Stock May See a Rebound from Current Levels. Following the market correction triggered by concerns over a deteriorating macroeconomic landscape in the United States, the company's share price is stabilizing around the $600 mark. We anticipate that this threshold may establish itself as a significant support level, potentially serving as a springboard for the shares to rebound and continue their upward trajectory. Furthermore, the relatively modest forward P/E ratios, approximately 21-23x, underscore the oversold condition of Meta shares and suggest a possible reversal.
Our price target for META over a 2-month horizon is $685, accompanied by a "Buy" recommendation. We advise setting a stop-loss at $530.
Metaplatforms
Meta: Further DownwardWe locate the META in a broader wave IV correction, which should unfold in a three-part - - structure. The current wave should push the price below the key support at $547.57. Once that level is broken, we anticipate a corrective rebound during wave , which should temporarily lift the price back above $547.57. The wave top should be followed by wave , which is expected to complete the overall correction with a final low inside the beige Target Zone between $491.53 and $414.50. This bottom should mark the end of wave IV. However, if the stock instead breaks out to the upside and overcomes the resistance at $740.91, we will have to expect a new high in wave alt.III before wave IV resumes its downward course (30% probability).
META is coming back to life!NASDAQ:META
As we discussed before a breakdown out of this Bullish Trend since 2022 would be very bearish and take META to the $400's.
Well, they said, hold my beer, and bounced hard exactly at the bottom of the channel and Anchored VWAP.
It's not over yet, as we need to follow through next week with a nice engulfing candle to make people into believers!
Not financial advice.
META to the $400s?! I hope so!!!NASDAQ:META
Is the show over or will the show go on?
At the bottom of the Bullish Channel that started in October 2022.
A breakdown of this channel could lead NASDAQ:META back to a stock price in the 400's...
A Breakdown retest of the lower Anchored VWAP band could be a false breakdown and bounce area as well. If we break through that though then this name is going to the $400's area.
Not financial advice
Meta - The Breakout Is About To Be Confirmed!Meta ( NASDAQ:META ) is attempting the breakout:
Click chart above to see the detailed analysis👆🏻
Over the past couple of months, we have been witnessing an incredible rally of about +750% on Meta. Looking at the long term reverse triangle pattern, this rally was not unexpected and such is the breakout. We still need to see confirmation, but then Meta will target the four digit level.
Levels to watch: $700, $1.000
Keep your long term vision,
Philip (BasicTrading)
META priced the new Channel Up bottom. Eyes $800 next.Meta Platforms (META) hit yesterday its 1D MA50 (blue trend-line) for the first time since January 02, while reaching the bottom of the short-term (dashed) Channel Up and the 1D RSI the November 15 2024 Low.
Since the 2-year pattern is also a Channel Up, this pull-back is a natural technical correction before the next Bullish Leg. Both previous rallies that started after long-term Accumulation Phases, then rallied by at least +45.10%.
As a result, we treat this correction as the most optimal medium-term buy opportunity to target $800 (top of dashed Channel Up and +45.10% from the Accumulation Phase bottom).
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META: 2nd Expansion Era targets $900 by the end of the year.Meta may have only now turne bullish on its 1D technical outlook (RSI = 56.480, MACD = 20.520, ADX = 63.183) but on 1W it has been on an exceptionally healthy bullish tech (RSI = 66274) since the October 2022 bottom. Ever since that was formed, Meta entered its 2nd Expansion era with similarities in price and RSI terms obvious with the 1st Expansion era of 2012-2018. As long as the 1W MA50 supports, we can see a similar Channel Up targeting $900 by the end of 2025.
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Why booze stocks are so cheap (part 1002)This analysis is provided by Eden Bradfeld at BlackBull Research—sign up for their Substack to receive the latest market insights straight to your inbox.
Now, I do not think Brown Forman will return to 32x earnings anytime soon — if ever — but if you even half the implied return from multiple expansion you still have plenty of upside.
Ditto Remy — I do not love Remy because Cognac, for lack of a better term, is screwed. But there’s still obviously value there and it trades on a very depressed multiple — what’s to say the family has had enough and finds a buyer?
Finally, Diageo. Less upside but more certainty — Guinness sells very well among Gen Z while their spirits portfolio continues to ebb along, if only growth in the low single digits.
Valuations always tend to normalise, especially for companies which make staples. Paying 30x earnings was always too much — I used to look at Brown-Forman enviously, and wish it were cheaper. Well, now it is! And nobody likes it. On chart is a couple of headlines from Barron’s.
I love to go counter-consensus to the media, because usually that’s a sign of peak pessimism. On chart are some headlines about Meta when everyone hated the stock in 2022/2023.
Obviously, the booze stocks are not Meta — Meta is a cash flow machine! Zuck wears a gold chain! Zuck would like us to know he is a Cool Guy!
But still — price drives narrative. Everyone was dissing Meta in 2022 (and I felt like an idiot buying it), now they love it. Ditto booze stocks. People aren’t going to stop drinking. That’s it. That’s the thesis.
META Stock Rises for 19 Consecutive SessionsMETA Stock Rises for 19 Consecutive Sessions
According to the Meta Platforms (META) stock chart:
→ Based on closing prices, the stock has posted 19 consecutive daily gains since 17 January.
→ META has reached an all-time high, solidifying above the key $700 per share level.
Bullish sentiment was driven by a strong Q4 earnings report that exceeded analyst expectations:
→ Earnings per share: reported $8.01 vs. expected $6.75.
→ Revenue: reported $48.38 billion vs. expected $46.99 billion.
Additionally, media reports highlighted:
→ Meta Platforms announced a 5% dividend increase.
→ Over 3.3 billion people interact with its apps daily.
→ Mark Zuckerberg stated that 2025 will be a turning point for AI at Meta.
→ Strong ties between the company’s CEO and President Trump.
Technical Analysis of Meta Platforms (META) Stock
Price movements have formed an ascending trend channel (blue) since 2024, with its lower boundary acting as stable support. However, the daily RSI indicator has entered extreme overbought territory, signalling potential vulnerability to a pullback.
If a correction occurs, the $700 psychological level may be tested, similar to how $680 was previously.
Former resistance at $636, reinforced by the channel's lower boundary, appears to be a strong support level.
Analyst Forecasts for Meta Platforms (META) Stock
According to Yahoo Finance:
→ In the past week, 23 analysts raised their earnings per share estimates for META in 2025.
→ 56 out of 65 analysts rate META stock as a "strong buy" or "buy."
TipRanks data indicates an average 12-month price target of $764.61 for META stock.
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Meta: Breakout!META has successfully broken out of its previous consolidation, extending a powerful uptrend. This nearly “correction-free” rally has once again pushed the stock to new record highs, which aligns perfectly with our primary expectation of further gains during the larger green wave . However, given the extent of this advance, META remains vulnerable to pullbacks. Thus, we assign a 33% probability to an immediate transition into a wave alt. correction, which would be triggered by a drop below the $547.57 support.
Meta Platforms - The Breakout Rally To $1.000!Meta Platforms ( NASDAQ:META ) is about to break out:
Click chart above to see the detailed analysis👆🏻
Ever since Meta Platforms - formerly known as Facebook - was listed on the Nasdaq, this stock has been creating new all time highs over and over again. Also over the past couple of months, momentum was pretty strong and a triangle breakout seems inevitable.
Levels to watch: $650, $1.000
Keep your long term vision,
Philip (BasicTrading)
META Platforms Options Ahead of Earnings If you haven`t bought META before the rally:
Now analyzing the options chain and the chart patterns of META Platforms prior to the earnings report this week,
I would consider purchasing the 660usd strike price Calls with
an expiration date of 2025-2-21,
for a premium of approximately $32.20.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Meta Analysis: Navigating Corrections and Entry Points 25.01.03Hello, this is Greedy All-Day.
Today, we’ll be analyzing Meta Platforms (META) and exploring its technical structure, correction patterns, and potential entry points.
Weekly Chart Overview
Since its IPO in 2012, Meta has maintained a largely stable uptrend, excluding the significant correction from 2021 to 2022. Historical corrections from Meta’s highs have averaged around 35%, with the broader trend remaining bullish.
How Should We Approach Meta?
If you're a value investor, any price might be a good price. Over the years, Meta has demonstrated significant growth, with a nearly 400% increase between 2013 and its pre-2021 highs.
However, as technical analysts, we aim to optimize entry points during corrections to maximize returns. Let’s dive into the potential setups and risks.
Rising Wedge Pattern: A Sign of Potential Correction
The current chart indicates a rising wedge pattern that has been forming since April 2024, a period spanning nearly 10 months. Rising wedges are inherently bearish reversal patterns, often preceding corrections.
Key Levels: If the pattern breaks downward, Meta could decline toward the pattern’s origin between $442 and $414.
Historical Context: Past corrections for Meta have averaged around 20%, making such a drop well within reason.
Meta’s Unique Supply Zone Behavior
Unlike many stocks that rebound at the upper boundaries of supply zones, Meta has a tendency to dip into the middle of the supply zone before finding support and rebounding.
This behavior suggests that when preparing to enter during corrections, focusing on the midpoint of key supply zones could provide better opportunities for long-term gains.
Optimal Entry Points
1st Entry Zone: Rising Wedge Breakdown
Zone: $442–$414 (light blue box)
If the rising wedge breaks downward, the pattern’s origin offers a strong entry point for those waiting for a correction.
2nd Entry Zone: Historical Support Levels
Zone: $312–$280 (blue box)
Although traditional logic might suggest entering near the green box (upper boundary), Meta’s history of testing the middle of its supply zones during corrections justifies adjusting the range lower.
3rd Entry Zone: Deep Correction Scenario
Zone: $210
While unlikely in the near term, this level represents a potential re-test of historical lows should broader market conditions worsen significantly.
4th Entry Zone: Extreme Hypothetical
Zone: $137
If Meta’s current peak mirrors its 76% decline during its last significant correction, $137 would represent a theoretical target. While highly improbable, it’s worth noting for extreme long-term planning.
Signs of a Larger Correction
Corrections often begin when Meta fails to hold support at the weekly 60 EMA.
Historically, Meta has transitioned into long-term downtrends after repeatedly testing and failing at the 60 EMA.
Key Level: The current 60 EMA is at $491. If Meta fails to sustain above this level, it could signal the start of a deeper correction.
Conclusion
Meta remains a fundamentally strong company with significant growth potential, but the technical outlook suggests caution in the short to medium term:
For Value Investors: Entering at any price might work in the long term, but technical traders should prioritize corrections for optimal entry.
Rising Wedge Pattern: A breakdown could lead to a 20% correction, with potential targets in the $442–$414 range.
Key Levels to Watch: The weekly 60 EMA at $491 will be a critical level to gauge whether Meta enters a longer correction phase.
Optimal Entry Points: Look to accumulate between $312 and $280 or lower if the correction deepens.
Let’s approach the market strategically and position ourselves for long-term success. 🚀
META: Rising Wedge breaking aims at $900Meta Platforms is bullish on its 1D technical outlook (RSI = 60.713, MACD = 12.470, ADX = 49.506), extending the uptrend inside the Rising Wedge that started in July. Technically that pattern is part of the larger Channel Up that dates more than a year back. That also started on a Rising Wedge, which when it broke, it made a +68.89% rise to a HH. So with the 1W RSI on a similar Bullish Cross, we expect the Rising Wedge to break soon and rise by more than +68% (TP = $900.00).
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META can turn bearish if it fails to break this Channel.Our previous call on Meta Platforms (META) was on July 26 (see chart below), almost 4 months ago when we gave a strong long-term buy signal on the 1D MA200 (orange trend-line):
Despite the excellent timing of the call, we has seen in the past 30 days that the price action has diverged from the model and the current Bullish Leg of the Channel Up isn't as strong as the previous two inside a 2 year span that each rose by +95%.
The price has instead turned sideways, mimicking the price action of the two Accumulation Phases that emerged after each of the Bullish Legs topped. The 1D RSI being on a Bearish Divergence (Channel Down already) technically agrees with that, so if you followed our July buy call, it might be best to book the handsome profit now and wait.
What to wait for? Well it all depends on a new pattern that has emerged, a Diverging Channel Up (dashed trend-lines). As long as the price is trading inside it, there is greater probability to give us a lower buy entry near the 1D MA200 (orange trend-line) again. In that case we will take it and target the top of the Diverging Channel Up at $660.
In the event that the price breaks above the Diverging Channel Up, we will buy the bullish break-out and pursuit the previous $800 Target as that would mean that the original 2-year Channel Up remains the underlying pattern dictating the long-term movement of the stock.
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META on a new expansion wave to $800.Meta Platforms / META is pulling back again to test the 1day MA50, which has been holding since September 11th.
The pattern is quite similar to the January 2nd 2024 pull back, a bullish break out that also took place after a prolonged consolidation pattern.
The 1week RSI patterns between the two are also fairly similar.
As long as the 1day MA50 holds, we expect META to stay on this expansion wave.
Target $800 which is a +93.92% rise from the bottom, the rise that formed the previosu peak (April 8th 2024).
Previous chart:
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META Platforms Options Ahead of EarningsIf you haven`t bought the dip on META:
Now analyzing the options chain and the chart patterns of META Platforms prior to the earnings report this week,
I would consider purchasing the 570usd strike price Puts with
an expiration date of 2024-11-1,
for a premium of approximately $21.75.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Rally Revved: Meta Shifts into High Gear After Rate CutsThe stock price has been on a wild ride this year, marked by significant volatility.
A clear Cup & Handle formation has emerged on the chart, suggested a potential continuation of the existing trend.
Following a successful breakout, the stock has maintained its position above the breakout level, demonstrating strength.
The price action suggests that the stock could potentially rally by 18-20% in the short term.
META: Targeting $700 at least by the end of the year.META platforms is bullish on its 1D technical outlook (RSI = 63.256, MACD = 7.090, ADX = 26.657) as it is making a healthy rebound on the 1D MA50. The 1 year Channel Up is posting recurring phases inside it and at the moment we are on similar grounds as early December 2023. Even the 1D RSI is identical between phases. Technically that suggests that the Channel Up can top on a HH after a +92% rise from the bottom but having the 0.618 Fibonacci level as a clear Rising Resistance, we will settle for a TP = 700.00 by the end of the year.
See how our prior idea has worked out:
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