Meta shares in buy range near record high

As Apple (AAPL), Tesla (TSLA) and Microsoft (MSFT) build new bases and NVIDIA (NVDA) is clinging to support at its 50-day moving average, the stock of Magnificent Seven Meta-platforms (META) continues to attempt to reach the top of its buy range. Building on its momentum after being named IBD Stock of the Day last week, Meta stock continues to rise on Monday.

↑
X

PLAY NOW
Improve your stock market investing skills with IBD Meetup groups

Meta Stock presents great mojo

After a sharp sell-off in July and a volatile August, Mag 7 shares are gaining momentum again. Apple, Tesla, Microsoft and Amazon.com (AMZN) are targeting new outbreaks. Even alphabet (GOOGL) has begun to restructure after a record 23% drop in July. Google stock is now attempting to overcome resistance at its 10-week line.

Meta and Nvidia now both occupy places in the IBD 50 and the IBD Leaderboard.

Meta stock entered the IBD Leaderboard as it cleared a brief trend line and the Sept. 6 high of 524.58. The parent company of Facebook, WhatsApp and Instagram showed resilience, finding support at its 50-day line after retreating as the Nasdaq came under pressure last month.

Another sign of technical strength and resilience is that Meta's 21-day exponential moving average crossed back above its longer-term 50-day benchmark on August 22. The relative strength line thus indicates that Meta is the market leader and rising.

Meta reclaimed its buy point at 542.81 on September 19. On Monday, the stock was pushed slightly above the buy zone, but it retreated and is now trading within that zone. The buy zone extends to 569.95.

While Meta stock is hitting the top of its buy zone and its all-time high, Nvidia continues to move directly along its downtrending 50-day line.

Meta shifts focus from the metaverse to AI

The social media giant has an impressive turnaround story, reflected in the stock's tremendous increase from its low in November 2022. After a sharp drop in earnings in 2022, Meta continues to post double-digit or better earnings and revenue growth.

In the second quarter, the company reported a 22% year-over-year increase in revenue to $39.1 billion. Earnings rose 60% to $5.16 per share. For the full year, analysts are forecasting earnings growth of 37% to $21.30 per share, followed by a 14% increase to $24.29 per share in 2025.

Meta Platforms is moving away from its previous focus on the metaverse and investing heavily in artificial intelligence. The company has told investors that it expects to invest between $37 billion and $40 billion this year.

Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.

YOU MIGHT ALSO LIKE:

Meta Stock and two others reach new highs

Sorry, Apple and Nvidia. Top funds love this non-Mag-7 stock now.

Nvidia, risk management and the 8 “secrets” of selling. Number 2 is the key.

Generate new stock ideas with the IBD Stock Screener

Identify bases and buy points with this pattern recognition tool