Meta (NASDAQ: META) stock has been on a tear this year. After a brief pullback last week, the stock has once again wiped off bears by breaking into fresh yearly highs. The positive price action can be attributed to yesterday’s earnings report, which beat analysts’ expectations.
The stock of the Facebook parent is now trading at its highest level since February 2022. This translates into a strong turnaround for the company, which lost billions of dollars on its Metaverse ventures last year.
The latest surge in META stock can be attributed to a lot of different factors. Firstly, the bullish sentiment has been prevailing in the US stock market since the start of this year. Secondly, the company posted strong Q1 results. Thirdly, the Q2 results have come out to be even more bullish, beating all the market expectations.
In its second quarter of the year, the tech giant earned $2.98 per share against the figure of $2.46 for the same quarter last year. During this period, the firm’s revenue also jumped by 11% to its highest level since 2021. As a result, META stock price opened higher today and was up 7.7% till press time.
In my previous NASDAQ: META analysis, I mentioned the possibility of the stock tagging the $322 level. The stock is now trading even above this level after a massive gap-up opening today. This also suggests that the stock is gaining strength within the ascending channel while trying to reclaim it.
Meta stock price forecast will remain bullish for me as long as it remains above the $320 level. Rejection from this level could be very intense due to multiple confluences, as shown in the following chart. Nevertheless, the tech stock rally appears to be unstoppable at the moment.
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This post was last modified on Jul 27, 2023, 15:33 BST 15:33