Meta Pushes Higher Ahead Of Earnings As Technicals Signal Buying Opportunities

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Zinger Key Points
  • Meta stock remains bullish, with key technical indicators flashing strong momentum ahead of its Q4 earnings.
  • RBC Capital sees AI-driven efficiency boosting Meta’s revenue, while Zuckerberg’s political moves could shape its future.

Meta Platforms Inc META will be reporting its fourth-quarter earnings on Wednesday. Wall Street expects $6.77 in EPS and $46.99 billion in revenues as the company reports after market hours.

The stock is up 69.23% over the past year, 13.25% YTD, as Meta continues to dominate the digital advertising space. Adding to the company's evolving landscape, CEO Mark Zuckerberg has been making notable moves in Washington.

Zuckerberg's Growing Political Footprint

Zuckerberg recently joined the Business Roundtable, a lobbying organization for major U.S. companies, The New York Times reported. This seems to signal a shift toward a more active role in policy matters.

Once known for steering clear of politics, the Meta chief has been increasingly vocal, aligning with key political figures and speaking out on regulatory issues. This growing presence in Washington could have long-term implications for Meta's business strategy, particularly as regulatory scrutiny over Big Tech intensifies.

Let’s look at what the charts indicate for Meta stock and how the stock currently maps against Wall Street estimates.

Read Also: Nvidia, Broadcom Gain Over 5% As Tech Giants Rebound After Monday Sell-Off: What’s Going On?

Meta Stock Riding A Bullish Wave Ahead Of Q4 Earnings

META stock is riding a bullish wave, with its share price of $679.27 soaring above its five-, 20-, and 50-day EMAs—clear signs of strong buying pressure.

Chart created using Benzinga Pro

The eight-day, 20-day and 50-day SMAs (simple moving averages) all flash bullish signals, reinforcing the stock's upward momentum. Even the 200-day SMA at $538.09 suggests META stock has left its past levels in the dust.

With an MACD (moving average convergence/divergence) of 14.27 and an RSI (relative strength index) of 72.39, momentum remains firmly in the bulls' favor.

For investors, this could mean the rally still has room to run, but with RSI in the overbought territory, a short-term pullback may be imminent. Those looking to enter may want to watch for dips, while existing holders could ride the trend higher—but keeping an eye on profit-taking levels wouldn't hurt.

Meta Analysts See 11% Upside

RBC Capital Markets recently highlighted the potential impact of DeepSeek AI advancements on various internet stocks, with Meta among the expected beneficiaries. AI-driven efficiency improvements could enhance content recommendations, audience targeting, and revenue generation for pure advertising businesses like Meta, Pinterest Inc PINS and Snap Inc SNAP.

Additionally, lower infrastructure costs could translate into higher earnings and cash generation for Meta, strengthening its long-term growth prospects.

Ratings & Consensus Estimates: The consensus analyst rating on Meta stock stands at a Buy with a price target of $668.02. The latest analyst ratings from JMP Securities, Rosenblatt and Wedbush imply a 10.99% upside for Meta, with an average price target of $753.67.

META Price Action: Meta stock was up 1.9% at $672.67 at the time of publication Tuesday.

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Photo: Shutterstock

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