Meta Platforms stock is surging to another strong year, building off the Facebook parent company's triple-digit gains in 2023. With the company's deep slump in 2022 firmly in the rearview mirror, analysts are closely watching the growth of Meta's ad business and its spending on AI.
Meta rejoined the ranks of trillion-dollar market cap tech companies at the start of the year and is among the world's most valuable companies. Meta stock is still highly rated among Wall Street analysts. But there are challenges ahead for the tech giant to build on its growth, including providing a return on Chief Executive Mark Zuckerberg's big bets on the metaverse and AI.
So is Meta stock a buy? Read below for the latest chart analysis for Meta stock as well as company news and ratings from Wall Street analysts.
Meta Stock: Testing 21-Day Moving Average
Meta shares are up from a Sept. 19 breakout from a 542.81 consolidation pattern buy point, according to MarketSurge.
The stock, which is trading near 578, is out of the 5% buy zone from the entry.
Shares appear to be testing Meta's 21-day exponential moving average. With the stock down a fraction Wednesday morning, shares are slightly below Meta's 21-day line.
Meanwhile, Meta's Relative Strength line remains above 90 out of a best-possible 99, a sign of continuing bullishness compared to the rest of the market.
Meta stock shows a 98 out of a best-possible 99 IBD Composite Rating, according to the IBD Stock Checkup tool.
Majority Of Meta Stock Analysts Hold Buy Rating
Founded as Facebook and renamed Meta Platforms in 2021, the company boasts 3 billion regular users across its Family of Apps, which includes Facebook, Instagram, WhatsApp and Threads.
That reach has enabled Meta to dominate the social media advertising market, and has made Meta stock a Wall Street favorite. In terms of valuation, only Apple, Nvidia , Microsoft , Amazon and Google-parent Alphabet boast larger market caps than Meta. Those stocks, along with Tesla, make up the so-called Magnificent Seven that powered the S&P 500's rally starting last year.
Even with a 400% run since the start of 2023, analysts remain bullish on further growth for Meta.
Of the 70 stock analysts following Meta, 84% have a buy rating, according to FactSet. Meta has nine neutral calls and two sell warnings among analysts.
The average target price for Meta stock by analysts is 608.79, according to FactSet, implying roughly 18% upside from Meta's closing price Tuesday.
Debate About AI Spending, Metaverse
Analysts are generally bullish about Meta's ability to use AI to strengthen its hold on the digital advertising market. Meta's digital advertising prowess makes it massively profitable, reporting nearly $29 billion in operating income for the first six months of 2024.
Still, there are questions from investors on the big long-term bets Zuckerberg is making.
The first debate is how quickly Meta can see a return on the tens of billions it is investing in data centers to power its AI ambitions, among other AI costs.
At the same time, Meta is also spending tens of billions on developing products and software to power Zuckerberg's vision for the metaverse.
AI is a much more popular topic among investors. Wall Street is mostly skeptical of the metaverse idea — even after Zuckerberg's Orion smart glasses demo impressed.
Meta Estimates For Q3 2024
Meta will publish its third quarter results on Oct. 30. Analysts polled by FactSet project Meta will post a 19% increase in earnings, to $5.21 per share. Sales are seen rising 17.7% to $40.2 billion.
Following Meta's Q2 report in late July, the stock jumped 5%. Before that, shares tumbled 10.5% in trading following Meta's first quarter report as investors worried over Meta's AI spending plans.
For the full year, Meta's earnings are seen increasing 37% to $21.36 per share, while sales rise 20% to $161.8 billion, according to FactSet.
Meta Market Cap
You can check for Meta's current stock price here. Meta's market cap was $1.5 trillion as of market close Oct. 22. Here is how the stock has grown over time:
| Time Period | Meta Stock % Gain | S&P 500 % Gain |
|---|---|---|
| 2024* | 65 | 22.7 |
| Previous 12 Months* | 89 | 39 |
| 2023 | 194.3 | 24 |
| 2022 | -64 | -19 |
| 2021 | 23 | 29 |
| Since IPO (May 18, 2012) | 1,419.5 | 332.5 |
* Prices as of Oct. 22
