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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)
NASDAQ:METALong
by basictradingtv
17
SHORT META Ahead of Earnings Report Based on Insider Selling"Meta Platforms Insider Sold Shares Worth $22,132,922" Mark Zuckerberg, 10% Owner, Director, Chair of Board and Chief Executive Officer, on January 15, 2025, sold 35,921 shares in  [eta Platforms. Following the Form 4 filing with the SEC, Zuckerberg has control over a total of 353,696 shares of the company, with 353,696 controlled indirectly.  Jennifer Newstead, Chief Legal Officer of Meta Platforms sold 905 shares of Class A Common Stock on January 14, 2025, at a price of $604.54 per share, totaling $547,108. Following the transaction, Newstead directly owns 31,105 shares of Meta Platforms. Jennifer Newstead, Chief Legal Officer of Meta Platforms, sold 905 shares of Class A Common Stock on January 21, 2025, at a price of $618.0 per share, totaling $559,290. Following the transaction, Newstead directly owns 30,200 shares of Meta Platforms. The sales were conducted under a Rule 10b5-1 trading plan adopted on November 30, 2023. Olivan Javier, Chief Operating Officer of Meta Platforms, sold 413 shares of Class A Common Stock on January 21, 2025, at a price of $618.0 per share, totaling $255,234. Following the transaction, Javier directly owns 16,275 shares and indirectly owns 95,287 shares through various entities. The sale was conducted under a Rule 10b5-1 trading plan adopted on August 30, 2023.
NASDAQ:METAShort
by TheLeadingIndicator
META - Now this is just strangeThis is just my opinion here, but I think META will soon reverse course. Notwithstanding the analyst upgrades, right now to an average of 757.98, the way it accelerated on the upwards trend (~20%) over the past ~5 weeks just seems suspicious. Scratching the surface to see what the company is up to, there seem to be quite interesting developments. For example: At Facebook they briefly tried to use AI generated fake accounts. Strange why would anyone think that would be good idea, considering the already many fake/bot profiles. I believe this was a move to combat the fact that the market share reached saturation, there aren't that many *real* people creating new accounts. Even though Zuckerberg "bent the knee" at the US president's inauguration and settled the lawsuit for unfairly banning Trump back in 2021 for $22 M, I still think what Meta did is going to have repercussions. Even though the first amendment right of free speech "does not apply to private companies", it is still discrimination, and I bet some people will take advantage of Trump's win. As the precedent has been set, they could now be hit by other similar lawsuits from other people being banned quite subjectively, suppressing their right to free speech. Thirdly, checking the uninformative insider transactions, the sell volumes are hard to believe. If price is expected to indeed reach $750, why would Zuckerberg sell, only in January 2025, $366 million worth of shares? (probably peanut money for Zuck, but still, more than a quarter billion is not really "money that jingles"). There were no insider buying since the 19th of November 2024, when the price was 550 per share. Their metaverse was a costly bet which, at least for the next year or two, seems that will not pay off. I'm saying this solely on the fact the more than 83% of users are below 18 years old, therefore have very little buying power (also 51% of users are below 13 years of age). On the VR space they focused too much on the software, and their hardware is now clearly behind Sony/HTC Vive (and truth be told, the software is really not that impressive either). Lastly, based on what has happened over the past few years, and how Meta quickly changes their tune, most likely they will receive increased scrutiny both in the US and abroad for their monopolistic behavior and content moderation policies. All in all, Meta is currently still a tech giant, but I believe right now it's a risky investment. At the time of writing 700 was shortly surpassed again, nevertheless, I think a 600 is a more realistic bet for the next 4 months (end of april 2025). If it were to reach a more realistic valuation of around 420, that would be a buy price for me. I'm not saying short it, I guess I *am* saying that it's probably not a good idea to buy more... I'm also saying to me it's a bit strange (and maybe I don't have all the pieces of the puzzle, so any comments/feedback would be appreciated). Either way, this is just my opinion on the stock, don't take this as financial advice, but more as entertainment. All the best and Good Luck! Alex
NASDAQ:METAShort
by TrinityAlex
Just In: $META Up 3% Premarket Trading Today After Q4 Beat.In a surprising turn of event, shares of Microsoft fell in Europe on Thursday after it issued a downbeat forecast for its cloud business, while Facebook parent Meta shares ( NASDAQ:META ) rose after beating expectations, as investors scrutinised the companies' spending on artificial intelligence. Microsoft shares traded down 4.5% on the Frankfurt market, having fallen a similar amount in after-hours trading on Wednesday and finishing the regular session down 1.1%. Meta shares however, opened up 2.5% in Germany, having risen 2.1% after the closing bell and ending the regular session up 0.3%. Days after Chinese upstart DeepSeek revealed a breakthrough in cheap AI computing that shook the U.S. technology industry, the chief executives of Microsoft and Meta defended massive spending that they said was key to staying competitive in the new field. Meta CEO Mark Zuckerberg said Wednesday’s that the rapid rise of competitors from China has only strengthened the tech giant’s commitment to its AI ambitions. The CEO said it’s too early to know how growing competition from China could impact its future investments. Meta reiterated its forecast of $60 billion to $65 billion in capital expenditures this year. Technical Outlook as of the time of writing, NASDAQ:META shares is up 2.81% in Thursday's premarket session. NASDAQ:META closed Wednesday's session with the overbought Relative Strength Index (RSI) of 71.87. however, NASDAQ:META doesnt seem to be cooling off any moment with the shares moving above key MA this only solidifies the fact that NASDAQ:META could bridged the $700 pivot point. However, in the case of a drawback, NASDAQ:META 's should find support in the 38.2% Fibonacci retracement point a level that aligns with the $640 price action.
NASDAQ:METALong
by DEXWireNews
META - Technical Analysis and GEX InsightsTechnical Analysis: * Price Action: META is consolidating between the key resistance at $716.17 and support at $676.49. A breakout above the resistance level could indicate further upside momentum, while a breakdown below $676.49 might signal a bearish shift. * Trend Analysis: The stock has been maintaining an uptrend channel, supported by ascending trendlines. However, the current sideways movement suggests a pause in momentum. * Indicators: * MACD: Indicates a slight bearish crossover, signaling potential short-term weakness. * Stochastic RSI: Currently oversold, hinting at a possible bounce or retracement in the near term. * Volume: Diminished activity during consolidation phases reflects indecision among traders. GEX and Options Analysis: * Call Wall: Strong resistance at $700 (30.67%) and $716 (highest positive GEX and gamma wall). * Put Wall: Key support levels are at $600 and $585, with $600 being the highest negative GEX/put support. * IVR and IVx: IVR at 13.7 and IVx average at 33.9, indicating relatively low implied volatility compared to its historical range. * Options Sentiment: Call positioning at 29.3%, with a bearish tone as puts dominate the sentiment. Trading Plan: 1. Bullish Scenario: * Entry: Above $716.20 with confirmation. * Targets: $730, $740, and $750. * Stop-Loss: Below $705. 2. Bearish Scenario: * Entry: Below $676. * Targets: $660, $645, and $630. * Stop-Loss: Above $690. Option Trade Suggestions: 1. Bullish Setup: Buy the $720 call expiring in 2-3 weeks if the price breaks $716 with strong volume. 2. Bearish Setup: Buy the $660 put expiring in 2-3 weeks if the price drops below $676. Conclusion and Thoughts: META is currently in a consolidation phase. Traders should watch for a breakout or breakdown from the current range to confirm the next trend direction. The GEX data suggests strong resistance at $700-$716, making it a critical level for bulls to overcome. Conversely, bears need to push the stock below $676 for further downside. Disclaimer: This analysis is for educational purposes only and not financial advice. Prices and setups are based on the current chart and may change in the premarket. Adjustments are required for real-time data. For questions, please PM me.
NASDAQ:META
by BullBearInsights
Speculative Madness: The Market’s Bubble Stocks Some stocks areSpeculative Madness: The Market’s Bubble Stocks Some stocks aren't just overvalued—they're in full speculative bubble mode. Fundamentals? Irrelevant. When euphoria takes over, rationality disappears. Here’s my list of bubble stocks that scream unsustainable pricing: SBUX, T, PLTR, BMY, PYPL, NFLX, GS, ISRG, ARM, C, SHOP, BSX, SPOT, UBS, IBKR, RELX, CEG, CRWD, MSTR, MMM, DASH, COF... And let’s not forget the obvious: TSLA, META, AMZN, AVGO, GOOGL, JPM, MA, V, WMT. Honestly, the entire banking sector, brokers, and tech are in bubble territory. What the hell is going on with this market? Why are algos just buying, buying, buying, squeezing all the shorts?! Unbelievable. The dump will be insannnnnnnne!!! 🚨
NASDAQ:METAShort
by Maximus20000
Meta's Q3 Financial Results | Growth and the Future of AI & AR Meta's Q3 Earnings: AI Investments Shape the Future of Engagement and Monetization Last week, Meta shared its Q3 earnings, revealing a familiar trend: while the results were strong, rising AI investments cast a shadow. With over 3.2 billion daily users across Meta’s apps, the company alongside Google and YouTube is in a prime position to bring AI into the mainstream. However, this shift could potentially disrupt the creator economy as we know it So, how will this affect the future of Meta’s apps? Did you know META is 222% up since our first analysis ? Let’s break down the quarter and explore the latest updates Today’s Highlights - Overview of Meta Q3 FY24 - Recent business highlights - Key quotes from the earnings call - The potential decline of the creator economy 1. Meta Q3 FY24 Overview Meta operates within two main segments FoA: Family of Apps (Facebook, Instagram, Messenger, and WhatsApp) RL: Reality Labs (virtual reality hardware and software) Daily Active People in FoA grew by 5% year over year, reaching 3.29 billion. However, user growth has slowed, with Meta adding 20 million daily users in Q3 2024 down from 50 million earlier in 2024. Meta’s reach now extends to over half of the global population aged 15 to 80, meaning future growth will hinge more on engagement and ad efficiency than adding new users. Key Insights from Zuckerberg: -Facebook: Positive engagement trends among Gen Z in the U.S. -Instagram: Sustains “strong” growth globally. -WhatsApp: Now surpasses 2 billion calls daily. -Meta AI: 500 million monthly active users. -Threads: 275 million monthly active users, up from 200 million in Q2, with notable growth in regions like the U.S., Taiwan, and Japan (currently not monetized and unlikely to drive significant revenue by 2025). Advertising Performance: - Ad impressions grew 7% year-over-year (compared to 10% in Q2). - Average ad price increased by 11% year-over-year (10% in Q2). - Average revenue per user grew by 12% year-over-year, reaching $12.29 (compared to Snap at $3.10 and Reddit at $3.58). - Despite some critics suggesting potential inflation due to bot activity, ARPU growth points to real ad value; fake users can’t generate revenue. Financials - Revenue rose 19% year-over-year to $40.6 billion. - FoA saw a 19% increase, reaching $40.3 billion. - RL grew by 29% to $0.3 billion. - Gross margin was 82% (-1pp Y/Y, +1pp Q/Q). - Operating margin stood at 43% (+2pp Y/Y, +5pp Q/Q). - FoA operating profit was $21.8 billion (54% margin, +2pp Y/Y). - RL reported an operating loss of $4.4 billion (down slightly from $4.5 billion in Q2). - EPS rose by 37% year-over-year to $6.03. Cash Flow - Operating cash flow was $24.7 billion (61% margin, +1pp Y/Y). - Free cash flow was $15.5 billion (38% margin, -2pp Y/Y). Balance Sheet - Cash and marketable securities totaled $71 billion - Long-term debt was $29 billion Guidance: - Q4 FY24 revenue is forecasted at $46.5 billion in the mid-range - FY24 expenses estimated at $96-$98 billion (previously $96-$99 billion) - FY24 Capex is expected to be $38-40 billion (previously $37-$40 billion) Summary Analysis Revenue growth was 20% in constant currency (compared to 23% in Q2), with ad revenue growth driven by increased ad prices. Strong demand for ads continued, largely due to higher ad performance, especially in online commerce, healthcare, and entertainment. Geographically, North America and Europe led growth at 21%, while Asia slowed from 28% to 15%. Reality Labs’ revenue rose 29%, mainly from hardware sales, though the division continues to post significant losses. As shown in the visuals, FoA operating profit reached an all-time high, while RL’s losses remain around $4 billion quarterly. Headcount increased by 9% year-over-year to 72,404, signaling a return to hiring, particularly in priority areas such as monetization, infrastructure, Reality Labs, and generative AI. Stock buybacks amounted to nearly $9 billion in Q3, up from $6 billion in Q2, though lower than the $15 billion in Q1. Management’s confidence in Meta’s stock remains strong, with an additional $1.3 billion paid in dividends. Capital expenditures climbed by 36% to $9.2 billion compared to $8.5 billion in Q2, with guidance staying on track. Management anticipates “significant acceleration in infrastructure expenses” for 2025, which will affect both the cost of revenue and R&D expenses. Despite heavy AI spending, Meta remains highly profitable, generating nearly $52 billion in free cash flow over the past 12 months—just shy of Alphabet’s $56 billion over the same period. Q4 FY24 revenue guidance points to deceleration, with mid-range growth forecasted at 16%. Let’s examine Meta’s investments and market position further. 2. Recent Business Highlights Meta Orion Meta's Orion AR glasses mark an ambitious step towards a future beyond smartphones, showcasing the potential of augmented reality (AR): -Prototype Status: Orion is a high-tech AR prototype, equipped with advanced features, but high production costs keep it out of reach for consumers. -Advanced AR Display: Using Micro LED projectors and silicon carbide lenses, Orion offers a broad field of view with sharper visuals than most current AR devices. -Interactive AI Integration: With Meta's generative AI, Orion enables users to interact with virtual elements, identify real-world objects, and create immediate solutions, such as recipes. -Complex Hardware: Orion relies on a neural wristband for control and a wireless compute puck, creating a multi-part system. -High Cost & Limited Production: With a price tag estimated at $10,000, Orion isn’t ready for mass production. Meta has produced around 1,000 units for demonstrations and internal testing. - Future Vision: Meta aims to release a consumer-friendly AR device within a few years, working toward a slimmer, more affordable model that could rival smartphone prices. Orion reflects Meta's goal to lead the next wave of computing, though significant technological and cost hurdles remain. Timing and Competitive Landscape**: Zuckerberg’s reveal of Orion may aim to justify Reality Labs' annual $16-20 billion operating loss to shareholders and gather feedback. Meanwhile, Apple has initiated its “Atlas” project to explore the smart glasses market, indicating potential plans to shift focus from the high-end $3,500 Vision Pro VR headset. How AI Is Already Impacting Meta Beyond future-oriented projects like Orion, Meta’s AI advancements are actively enhancing its core business in two strategic areas: engagement and monetization. -Engagement: Meta's recommendation engine uses AI to tailor feeds with highly relevant video content, keeping users engaged. AI-driven prediction systems further increase app usage by showing content that maximizes interaction. -Monetization: AI boosts ad efficiency across the entire lifecycle—from creation to performance tracking. Generative AI assists with ad copy, images, and video, while advanced models analyze user behavior to serve targeted ads, improving conversion rates incrementally. -Meta AI Studio: This platform allows developers to create, train, and deploy custom AI models within Meta’s ecosystem. By enabling personalized assistants, interactive AI, and AR applications, Meta seeks to drive new consumer apps and maximize ad potential across its platforms. Market Share Meta’s advertising revenue hit $39.9 billion in Q3, reaching 81% of Google’s search revenue, up from 76% last year. Meta’s ad revenue is expanding at the same rate as Amazon’s, despite Meta’s larger base, signaling regained market share and effective adaptation to the post-ATT environment. 3. Key Quotes from the Earnings Call CEO Mark Zuckerberg - On AI and the Family of Apps: “Improvements to our AI-driven feed and video recommendations have led to an 8% increase in time spent on Facebook and a 6% increase on Instagram this year alone. More than a million advertisers used our GenAI tools to create over 15 million ads last month, and we estimate businesses using Image Generation are seeing a 7% conversion lift.” -On Llama 4: “We're training the Llama 4 models on a cluster larger than 100,000 H100s, more extensive than anything reported elsewhere.” -On RayBan Meta Glasses: “Glasses are the ideal AI form factor as they let your AI see, hear, and communicate with you. Demand remains strong, with the new clear edition selling out quickly.” -On Meta AI: “We’re on track for Meta AI to become the world’s most used AI assistant by year-end, with popular uses including information gathering, task assistance, and content exploration.” CFO Susan Li -On Recommendations: “Inspired by scaling laws observed in large language models, we’ve developed new ranking architectures for Facebook video that enhance relevance and increase watch time” -On Capital Allocation: “We’re optimistic about our opportunities and believe that investing now in infrastructure and talent will accelerate progress and returns.” 4. The Potential Decline of the Creator Economy Facebook and Instagram have evolved from social networks to content networks, benefiting creators with wide-reaching platforms. However, this era may be coming to a close. -AI-Generated Content: Zuckerberg shared plans to introduce AI-generated and AI-summarized content on Facebook, Instagram, and potentially Threads, gradually shifting away from creator-generated content as the primary engagement driver. -Impact on Creators: As AI learns to identify and generate engaging content, creators could struggle to compete, with algorithms delivering exactly what audiences want. Over time, creators may face a landscape where AI determines the most engaging posts, relegating them to the sidelines in a world increasingly powered by self-generating content. -Why It Matters: Platforms like YouTube share 55% of ad revenue with creators, but Meta does not, meaning that an AI-driven shift isn’t primarily about cost-cutting. Instead, it allows for more integrated ad placements within algorithmic feeds, potentially boosting impressions and conversions. Although AI generated feeds may sound dystopian, current high engagement accounts already use tactics to maximize engagement, meaning the shift to AI might go largely unnoticed by audiences.
NASDAQ:META
by moonypto
2
Mega cap earnings watchMega cap earnings get started today. Here's a comparison chart of META, TSLA, MSFT, AAPL, GOOG & AMZN. With the ticker Tracker MFI oscillator on the 1 day ext chart 3 month view. Below is the list of dates and times of their earnings release. META 1/29 4:05pm Consensus EPS = 6.68 Revenue = 46.98 B TSLA 1/29 4:05pm Consensus EPS = .75 Revenue = 27.61 B MSFT 1/29 4:05pm Consensus EPS = 3.11 Revenue = 68.75 B AAPL 1/30 4:30pm Consensus EPS = 2.36 Revenue = 124.1 B GOOG 2/4 4:05pm Consensus EPS = 2.12 Revenue = 81.38 B AMZN 2/6 4pm Consensus EPS = 1.52 Revenue = 187.13 B
NASDAQ:META
by Options360
META Approaching Crucial Resistance! Trade Setups for Jan 23 Analysis: Meta Platforms (META) has seen a strong upward move and is now trading close to a critical resistance zone near $650. The price action and gamma levels suggest a potential continuation or retracement scenario. Technical Observations: 1. Trend Analysis: * META is in a clear uptrend, supported by higher highs and higher lows. * The price is forming a rising wedge, indicating potential bullish momentum but also a risk of reversal if key levels are breached. 2. Key Levels: * Resistance: $652 (recent high and 3rd call wall), $700 (highest GEX/call resistance). * Support: $633.43 (immediate support), $603.65 (major support level and put gamma wall), $580 (next key level). 3. Indicators: * MACD: Currently showing slight bearish divergence, signaling potential short-term weakness. * Stochastic RSI: Approaching overbought territory, suggesting caution for longs. 4. Volume Profile: * Increased buying volume during the recent rally indicates strong bullish interest but may slow as META nears resistance. GEX Insights: 1. Call Walls: * Key Call Levels: $652 (3rd call wall) and $700 (highest positive GEX and gamma resistance). Breaching $652 could open the path to $700. 2. Put Walls: * Key Put Levels: $603.65 (strong support zone) and $580 (next major support). 3. IVR and Options Activity: * IVR: 43.5 (slightly above average volatility). * Options Flow: Call volume dominates with a 29.9% skew, reinforcing bullish sentiment. Trade Scenarios: Bullish Scenario: * Entry: Break above $652 with strong volume. * Target: $680 (intermediate resistance) and $700 (long-term target). * Stop-Loss: Below $640 to limit downside risk. Bearish Scenario: * Entry: Rejection at $650-$652. * Target: $633.43 (immediate support) and $603.65 (key support). * Stop-Loss: Above $655 to minimize losses. Actionable Suggestions: * Closely watch price action around $650-$652. A breakout could accelerate upward momentum, while rejection signals a pullback. * Monitor options flow for shifts in sentiment, particularly near $652 and $700. * Be cautious of overbought signals from the Stochastic RSI when considering long positions. Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always do your own research and manage your risk before trading.
NASDAQ:META
by BullBearInsights
The Incredible Return of MetaI always find it fascinating to study stocks that have "returned from the dead" and made comebacks no one saw coming. I'll be the first to admit this: while I get some trades right, this one I got completely wrong. I thought Meta was on its way out in so many different ways. In fact, during its most recent crash in late 2022/23, I thought the final nail in the coffin had been struck. But I was wrong. Yes, I was very wrong. It's up over 600% since that point! Looking at Meta's recent resurgence, I have to give Zuck credit where credit is due. He took bold swings, diving into AR/VR, AI, and cutting-edge technology like headsets. Something tells me there’s even more up his sleeve—possibly a phone of some kind. On a recent Joe Rogan podcast, he also had the guts to call Apple out in several distinct ways. But what’s really caught my attention is Meta’s new data center. That, perhaps, is the bigger story here. The data center. Here are some impressive stats about the massive facility Meta has agreed to build: 1. Scale: The facility will span approximately 4 million square feet, making it Meta's largest data center to date, though still smaller than Langfang, China’s 6.3 million-square-foot behemoth. 2. Compute Power: By 2025, the center is expected to deliver around 1 GW of compute capacity—the same output as a typical U.S. nuclear power plant and enough to power about 1 million homes annually. 3. GPU Count: With over 1.3 million GPUs planned, this data center will dwarf the world's fastest supercomputer, Frontier, which uses 50,000 GPUs. The facility will be designed to handle enormous AI processing demands. 4. Capital Expenditure: Meta's projected capex for 2025 is $60–$65 billion, surpassing the GDP of countries like Iceland and Estonia and more than doubling Google's 2022 capex of $31 billion. 5. Bandwidth and Connectivity: Supporting 1.3 million GPUs will require unprecedented bandwidth and innovative networking solutions, potentially exceeding 100 Tbps. I don’t plan on taking a position in Meta, but it’s certainly sparked my interest in the incredible investments happening in this space. Specifically that we are in a stock picker's market and that many companies, the ones who have survived the recent years, are emerging now as the leaders. There is a rather large basket of moves like this that continue to shape up! As I write this, I can’t help but think that more comebacks like this are on the horizon. I’ve been sharing ideas like these on my profile and have more to come. Stay tuned.
NASDAQ:META
by scheplick
2
US Stocks to Watch This WeekDeepSeek triggered NVidia meltdown forced many investors to Exit NVidia positions and that money is flowing into some other stocks. Following stocks have surfaced above of the cloud (consolidation zone) as detected by Option Scalper indicator: 1. ABT 2. META 3. WMT 4. V 5. NFLX 6. MA 7. JNJ 8. CRM 9. HD 10. ACN 11. PEP 12. TMO 13. JPM 14. PG 15. COST 16. BRK.A 17. AMZN 18. KO 19. WFC 20. LLY Following Stocks have broken below the consolidation zone: 1. NVDA 2. AVGO When the up or down momentum fades in any stock, it will come inside the cloud and that is the time to exit. Happy Trading!
NASDAQ:META
by jellygill
Meta’s Charts Show Caution Signs Ahead of Next Week’s EarningsFacebook parent and “Magnificent Seven” member Meta Platforms NASDAQ:META will release fourth-quarter earnings next Wednesday (Jan. 29) after the bell. Let’s check out social-media giant’s technical and fundamental picture heading into the report. Meta’s Fundamental Analysis Over the past four quarters, META has moved 9.9% on average the day after reporting earnings. So, expect the potential for significant volatility and be mentally prepared for it. As I write this about a week ahead of earnings, a combination of one META call and one META put that are both 10% out of the money are trading for about $19 in combined premiums. That’s less than 3% of the stock’s $636.45 Thursday close. Analysts’ consensus view at last check was for the company to report $6.75 in GAAP earnings per share on roughly $47 billion of revenues. That would compare very well to the $5.33 in GAAP earnings per share that META reported on $40.1 billion of revenues a year ago, reflecting about 17% in year-over-year sales growth. Digging into META’s financials, the firm has been a cash-flow beast. The company had $82.7 billion in operating cash flow as of Sept. 30. And after capital expenditures, the firm still created $52.1 billion in free cash flow. Of that, META used $48.2 billion during the third quarter to repurchase common stock while dishing out $3.8 billion in cash dividends to shareholders. In short, the company returns free cash flow to its investors, which is how things really should be. Looking at META’s third-quarter balance sheet, the company ran with a $70.9 billion cash position and $91.1 billion of current assets as of Sept. 30. Current liabilities added up to $33.3 billion, which included no short-term debt and no unearned revenue. That makes the firm’s so-called current ratio easy to calculate as 2.73, which most investors would consider very healthy. Total assets amounted to $256.4 billion, of which just $21.6 billion covered so-called “intangible” assets. Total liabilities less equity came to $91.9 billion, including $28.8 billion of long-term debt. However, that's something that META could take care of almost 2-1/2 times over out of pocket with its Sept. 30 cash position, so that doesn’t look like an issue. All in, many investors would say that the firm looks extraordinarily fundamentally sound. Meta’s Technical Analysis However, META’s six-month chart as of Wednesday (Jan. 22) seems to show that the stock doesn’t look as good technically as it does fundamentally: What we see here is a lengthy “rising wedge,” as denoted by the green box above. That’s historically a pattern of bearish reversal. In fact, the most positive thing we could say about this pattern is that the wedge doesn’t yet appear ready to close (which could provoke a violent move downward if that happens). META’s Relative Strength Index (or “RSI,” the gray line at the chart’s top) is also better than neutral. Similarly, the stock’s daily Moving Average Convergence Divergence indicator (or “MACD,” denoted by the black and gold lines and blue bars at the chart’s bottom) is in decent but not great shape. The histogram of Meta’s 9-day Exponential Moving Average (or “EMA,” marked with blue bars) is ever so slightly above zero. And the 12-day EMA (the black line) is running above the 26-day EMA (the gold line), if just by a smidgen. Add it all up and META’s downside pivot here would be the stock’s 50-day Simple Moving Average, denoted by the blue line above ($597.80 in the chart above vs. the stock’s $632.25 Thursday afternoon). The 50-day SMA appears to be running even with the rising wedge’s lower trendline. However, check this other chart out: This chart shows a so-called “double top” pattern of bearish reversal that stretched from mid-November to today (marked with two red boxes at right above). That pattern’s neckline -- $580 vs. Meta’s $632.25 as of Thursday afternoon -- would serve as the downside pivot here. So, technical analysis is currently flashing two bearish patterns of reversal working against further upside momentum for the stock. The one saving grace for META bulls is that the stock developed another double-top pattern back in September/October (the two red boxes at left). However, that one didn’t lead to a big sell-off. So, there’s precedent here for META to defy bearish-looking technicals. The bottom line -- caution is the word going into META’s earnings next week. The charts above don't necessarily mean that a sell-off is imminent, but there are some historically bearish technical set-ups in play. Those who are long the stock should stay on their toes and might consider hedging their positions through the options market or some other way. (Moomoo Technologies Inc. Markets Commentator Stephen “Sarge” Guilfoyle” had no position in META at the time of writing this column.) This article discusses technical analysis, other approaches, including fundamental analysis, may offer very different views. The examples provided are for illustrative purposes only and are not intended to be reflective of the results you can expect to achieve. Specific security charts used are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. Moomoo and its affiliates make no representation or warranty as to the article's adequacy, completeness, accuracy or timeliness for any particular purpose of the above content. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct. Moomoo is a financial information and trading app offered by Moomoo Technologies Inc. In the U.S., investment products and services on Moomoo are offered by Moomoo Financial Inc., Member FINRA/SIPC. TradingView is an independent third party not affiliated with Moomoo Financial Inc., Moomoo Technologies Inc., or its affiliates. Moomoo Financial Inc. and its affiliates do not endorse, represent or warrant the completeness and accuracy of the data and information available on the TradingView platform and are not responsible for any services provided by the third-party platform.
NASDAQ:META
by moomoo
1