Meta is going through hard times, though we should be used to this by now. A decrease in capitalization, failures in the metaverse, the fall of the advertising market, various scandals… But let’s fast forward to the present. Meta stock has grown by 156% in the last six months. If you have the company’s shares in your portfolio, you’re probably quite pleased with yourself. And if you don’t, is it too late to correct the mistake?
Firstly, let’s look at the chart demonstrating the movements of Meta stock in the last half of the year. Just to soak it all in.
We shouldn’t forget that in the chart above we see prices far from Meta’s highs. The next chart should remind you of all you need to know about the last five years for this stock. Also, if you want to be a more successful trader and forecast future market movements, you can use special tools. One of them is the economic calendar, which includes all the major economic events so you can predict what the next market trend will be.
The last massive hike for Meta stock was about 14% – it happened after the Q1 financial report. The company showed growth in revenue for the first time in the last four quarters. Moreover, the result became more impressive than analysts had expected – $28.65 bln against $27.7 bln.
There are multiple reasons influencing the numbers in the report. Meta started to pay more attention to efficiency and practical issues like online advertising. The last thing was also facilitated by the recovery of the Chinese ad market after easing off the Covid restrictions. Furthermore, the company reduced and continues to reduce costs through the dismissal of employees.
One more significant moment that pleased the investors was the shifting of the focus from the metaverse to AI technologies. Yep, the success of ChatGPT does not leave any tech giants indifferent to it. But the case of Meta might be special because Facebook, Instagram and WhatsApp give a lot of space for introducing new features and technologies connected with AI. Plus, all these platforms still stay popular, get new users, bring lots of profit, and have a strong influence on the world ad market – sounds like good long-term prospective upsides.
Will Meta stock continue to grow? It’s hard to forecast because we all know that investing on high levels is at the least not always a good idea. Especially in a situation when the world and the markets seem so unstable. But the average consensus forecast tells us that analysts believe in Meta stock. The forecast is +10% in the next 12 months.
If you have already decided that +10% would look pretty good in your portfolio – you’re right. But the opinions of analysts (even the best of the best’s) might be far from the real results. That’s why you should do your own research before every trade and remember that trends in the markets might change with any given day.
This article was written in cooperation with TradingView