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Meta Platforms Inc. Upward Dynamics – in the Future

2/2/2023 3:07 PM

The shares of Meta Platforms Inc., an American multinational holding company that owns a technology conglomerate and the largest social network Facebook, have been actively growing since the beginning of this year, and currently the price is around 153.00. The quotes are supported by positive financial statements for Q4 2022, as well as management plans for 2023.

Thus, quarterly revenue reached 32.17B dollars, which turned out to be better than forecasts of 31.53B dollars, but lower than the figures for the same period last year. At the same time, earnings per share amounted to 1.76 dollars instead of the expected 2.22 dollars, which is explained by the costs of restructuring a number of divisions. The greatest enthusiasm of investors was caused by the plans of Meta Platforms Inc. for 2023. Management assumes revenue of 26.0-28.5B dollars, above the average forecast of experts of 27.1B dollars. In addition, the company promises to reduce total expenses, which will amount to 89.0-95.0B dollars – significantly lower than the expected 94.0-100.0B dollars. Capital expenditures may also be adjusted to 33.0-30.0B dollars from 34.0-37.0B dollars. All this will help Meta Platforms Inc. to free up additional funds for the repurchase of shares worth 40.0B dollars, adjusting them from last year's volume of 27.9B dollars.

Undoubtedly, the results of the US Fed meeting will contribute to the upward dynamics of the issuer's quotations. Investors generally assessed them positively despite the fact that officials, contrary to expectations, did not hint at the timing of the suspension of the interest rate hike cycle. The size of the value adjustment was reduced to 25.0 percentage points, and the head of the regulator Jerome Powell announced the possibility of a "soft landing" of the economy and the return of inflation to 2.0% without a significant decline and an increase in unemployment.    

Technically, the price has risen above the level of 150.00 (Murray level [8/8]), which gives the prospect of further growth to the levels of 162.50 (Murray level [+2/8]) and 171.20. The key for the "bears" is the level of 144.60 (Fibo retracement 61.8%, the middle line of the Bollinger Bands, Murray level [7/8]), with its breakdown, it will be possible for a decline to develop to the area of 137.50 (Murray level [6/8]) and 131.25 (Murray level [5/8]), however, for now this option of price movement it seems less likely, since technical indicators point out the continuation of the upward trend: the Bollinger Bands and the Stochastic are directed upwards, the MACD histogram is stable in the positive zone.

Resistance levels: 162.50, 171.20. | Support levels: 144.60, 137.50, 131.25.

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