Meta stock — along with tech titan Alphabet — headline Tuesday's IBD Screen Of The Day, a column that focuses on top ideas in the IBD Stock Screener.
Tuesday's stocks to watch come from the Relative Strength Line New Highs screen. This screen identifies top-growth stocks with RS lines that are making new highs, a sign of big stock market outperformance in the ongoing stock market correction. Strong RS lines are hallmarks of previous stock market winners. Other stocks on the screen include Dropbox and Manhattan Associates.
Meta Stock
Social media giant Meta Platforms declined 1.9% midday Tuesday, threatening to erase Monday's gains.
Meta stock is building a cup base with a 326.20 buy point, according to IBD MarketSmith chart analysis. Meanwhile, an early entry at 312.87 is also in play. Shares are fighting to hold above their 50-day line in today's stock market.
Last week at its Connect conference, Meta unveiled its new smart glasses with a built-in AI assistant. All the excitement over artificial intelligence has yet to yield a way of monetizing its potential for consumers, but the parent of Facebook and Instagram may be onto something.
Meta also unveiled its new Quest 3 virtual-reality headset and an array of nifty generative AI tools to give users more reason to spend time on Facebook and Instagram. But Meta still had one more potential ace up its sleeve. On Thursday, CEO Mark Zuckerberg began to win some believers in his vision for a metaverse future with the unveiling of lifelike avatars.
Amid strong fundamentals and big price gains since early November, Meta stock boasts a 98 out of 99 IBD Composite Rating, according to IBD Stock Checkup.
Meta stock is an IBD Leaderboard stock. In recent weeks, the position was raised by a quarter after it retook the 50-day moving average and cleared recent highs.
Google Stock In Cup With Handle
Search giant Alphabet is trying to rebound from its 10-week line, but GOOGL stock lost 1% Tuesday. A decisive bounce from this key benchmark would place Google stock in a new buy area.
Keep in mind the stock market correction should have investors in cash. But a follow-through day, returning the market outlook into an uptrend, could occur any day.
On July 27, Alphabet jumped nearly 7% as Wall Street cheered a second-quarter earnings beat and management's outlook amid rising investments in artificial intelligence. Revenue also topped expectations, boosted by cloud computing and YouTube.
Shares broke out past a cup-with-handle's 127.10 buy point, but have failed to gain traction with the market volatility.
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Outside Meta Stock: Dropbox, Manhattan
Dropbox and Manhattan Associates are holding up well in the face of a deepening stock market correction.
Dropbox declined nearly 2% midday Tuesday, on pace to close below its 50-day line. Still, the market leader is forming a flat base with a 28.68 buy point.
Dropbox provides a work collaboration software platform. It lets users store, share and collaborate on documents, photos and other files online. Also, it allows users to access files from any device. Founded in 2007, it offers a range of subscription plans.
Manhattan Associates dropped 1.3% Tuesday midday, on pace to end a four-day win streak that saw the stock regain its 50-day line. Shares are about 5% below a 205.70 cup-with-handle entry following a Sept. 8 breakout move. The stock may be forming a new handle.
The company's core business is selling warehouse management software. Also, Manhattan Associates sells order-management system software, which handles the order fulfillment process.
Like almost all software companies, Manhattan Associates is rushing to figure out how to integrate generative artificial intelligence tools into its platform. Generative AI "models" process "prompts," such as internet search queries, that describe what a user wants to get. Large language models require training data for specific tasks.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
