Meta Platforms Inc. (META Stock)

Meta Platforms (META Stock) rallied around 125.27% in the last six months and gained nearly 223.5% over the past 52 weeks. The company’s Threads app launched on July 5, 2023, & the platform already has 30 Million users. Twitter surpassed a 10 Million user base count in two years. Twitter owner Elon Musk might sue Meta for its newest release, arguing it stole the trade secret by employing Twitter ex-employees. 

Meta Platforms Inc. (META Stock) – Financial Analysis

NASDAQ: META has been performing well; its price rallied around 136.55% YTD. This momentum can be attributed to the buzz surrounding artificial intelligence. This frenzy caused tech stocks to skyrocket, and Nvidia Corp. (NASDAQ: NVDA) saw its market cap reach $1 Trillion for some time. 

The company also reduced operating costs and reduced its investment in the metaverse. Meta also strategically dealt with market competition like TikTok. Many established companies use ‘threads’ in their names. For instance, Cynthia Zordich, the wife of retired NFL player Michael Zordich launched her Thread platform in 2016 to include women in sports. Legal experts hint that one of them might soon file a trademark-infringement case against them. 

In June 2023, there were speculations that the META Stock would stabilize around $300. Now, at press time, NASDAQ: META is trading at $290.53 with a slight drop of 0.50%. Previous close and open were at $291.99 and $292.18, respectively. The 52-week range is from $88.09 to $298.12. If all are in favor, the price might soon make a new high.

The trailing twelve-month (ttm) price to earnings (P/E) ratio is 35.34, and the (ttm) earnings per share (EPS) is 8.22. With an average volume of 21.96 Million shares, the market cap is $744.55 Billion. Analysts placed a 2.76 rating for moderate buy and estimated a price target at $259.00 with a 10.9% downside. 

The last earnings were reported on April 26, 2023, where the reported revenue of $28.645 Billion surpassed the estimated value of $27.669 Billion by 3.53%. Also, the expected EPS was $1.96, but the company posted an EPS of $2.64, beating expectations by 34.69%. 

In the last quarter, the consensus estimate for EPS was $2.12, but Meta Platforms Inc. posted $3.00 per share, surpassing the expectations by 41.51%. With subsequent earnings reports scheduled for July 26, 2023, experts feel the company might again outshine expectations. 

Revenue (ttm) is $117.35 Billion, with year-over-year (YoY) quarterly revenue growth of 2.60%. Operating expenses swelled by 5.06% to $14.06 Billion, and operating margin gained 18.27%. The net profit margin suffered by 25.50% to 19.93, and the profit margin jumped by 18.27%. At the same time, the (ttm) gross profit is $92.66 Billion. 

Meta Platforms Inc. (META Stock) – Candle Exploration

It took over a year to fill the gap created after the subpar earnings report of February 2022. Still, the breakout is not solid, and there are chances of a slight retracement. However, the upward-moving trajectory of the EMA brings in some positivity. While the receding RSI value of 64.44 contradicts it.

However, the price might come down and bounce off the ascending trendline if the upcoming earnings report exceeds market expectations. NYSE: META could form new highs for 2023. For now, the price might temporarily consolidate below the supply zone. If the price drops below the trend line, it could enter the demand zone to come back up. 

Disclaimer:

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets & stocks comes with a risk of financial loss.

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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