Should I Buy the Meta Stock Breakout at New All Time High?

This week a Meta Stock Breakout (Nasdaq:META) pushed Meta stock to a new all time high.

What does Meta Platforms do?

Meta Platforms Inc. is a leading multinational technology conglomerate headquartered in Menlo Park, California. Founded by Mark Zuckerberg in 2004, the company initially gained fame through its social networking platform, Facebook. Over the years, Meta has expanded its portfolio to include a diverse range of products and services, aiming to connect people worldwide and enhance their digital experiences.

Meta’s core mission revolves around connecting people and fostering communities through its various platforms and technologies. Key products and services include:

• Facebook, Instagram, WhatsApp, and Messenger, serve billions of users globally. These platforms provide avenues for social interaction, content sharing, and global communication
• Meta is at the forefront of VR and AR innovation with products like Oculus VR headsets and its Horizon virtual reality platform. These technologies aim to redefine how people interact in digital spaces and explore new realms of immersive experiences
• A significant portion of Meta’s revenue comes from advertising on its platforms. The company leverages its vast user base and sophisticated targeting capabilities to offer effective advertising solutions to businesses worldwide
• Recently launched, Meta Work focuses on providing productivity tools and virtual collaboration spaces. This initiative aims to integrate work and social interactions seamlessly, catering to the evolving needs of a digital workforce

Meta primarily generates revenue through advertising on its social media platforms. By offering targeted advertising solutions based on user data and behavior, Meta enables businesses of all sizes to reach their target audiences effectively. Additionally, the sale of VR hardware, such as Oculus devices, contributes to its revenue stream. As Meta continues to innovate in VR/AR and expand its digital ecosystem, new revenue streams are expected to emerge, further diversifying its income sources.

Looking ahead, Meta Platforms Inc. is poised for continued growth and innovation across multiple fronts. The company’s strategic investments in virtual reality, augmented reality, and metaverse technologies are set to redefine digital interaction and entertainment. With ongoing developments in artificial intelligence and connectivity, Meta aims to create more personalized and engaging experiences for its users while exploring new avenues for revenue generation.

Moreover, Meta’s commitment to sustainability, digital safety, and community well-being underscores its responsibility as a global tech leader. Through partnerships, research initiatives, and community-focused projects, Meta strives to build a safer and more inclusive digital world.

Meta Platforms exemplifies resilience and adaptability in the dynamic tech industry. With a strong foundation in social networking, coupled with bold ventures into virtual realms, Meta continues to shape the future of digital connectivity and redefine possibilities in the digital age. Investors and tech enthusiasts alike can look forward to Meta’s ongoing evolution and its potential to pioneer transformative technologies that enrich lives globally.

Meta Stock Breakout Chart Performance

Meta stock has been has moved higher since 2012 with one major bump in fall of 2021 falling from the $385 price level like many other tech companies following pandemic over hiring and overly ambitious initiatives. Meta stock recovered in early 2024 and has proceeded to move higher ever since.

After fully recovering from the 2021 drop, Meta’s all time high has been $527.34 on April 5 2024. This week Meta stock closed at $539.91 up 5.87% in a single day. Trading volume was 21.3M compared with 11.9M average. Meta closed the trading week at the high end of the day and under such high volume that the expectation for Meta stock is to continue to increase into next week.

Should I Buy the Meta Stock Breakout?

If the Meta Breakout of 5.87% daily increase under 80% higher volume is not convincing enough, it is worth looking a little closer at how Meta as a company has been performing:

Investors and large institutions buying thousands and millions of shares are looking for the highest return and Meta’s impressive quarterly and annual sales growth hint that Meta’s services are in demand. Meta’s strong EPS quarterly and annual earnings per share also paint a picture of a company that can execute. Based on this the expectation is that Meta will continue to grow and execute in the future which will drive demand for Meta shares thus fueling further price increases.

Other interesting facts about Meta stock are:

• it has a relative strength over 90 on a 1 month and 6 month basis indicating strong performance compared to other stocks in the market on which relative strength is measured against, in this case the S&P 500
• 39% of shares are held by institutions which significantly influences demand for the stock increasing the stock price over time as institutions accumulate shares increasing their positions, create liquidity, and since institutions invest for the long term provide an indication of good long term investments
• 12% of shares are held by insiders which is important because ownership encourages insiders to make decisions that enhance shareholder value, such as strategic investments, efficient capital allocation, and prudent risk management. In turn, these actions can lead to improved financial performance and a positive outlook for the company, potentially driving the stock price higher
• Technology is a strong stock market trend right now which translates into demand for shares of leading companies like Meta and increase in stock price

These are some factors to consider in whether to buy Meta stock. Strong company sales, earnings and performance compared to other socks in the S&P 500 indicate BUY.

– Trade well and be well !