Meta Is Getting High
The owner of Facebook and Instagram climbed a higher hill, as it has grown by nearly 4% the next day after the Fed's interest rate reduction job. The former all-time highs was at $542.81 (after the U.S. Independence Day weekend) and then at $544.23 (end of August, just a day before Fed chair speech in Jackson Hole). And now the peaking price of Meta stock exceeded $560 per share. Breaking the former resistance by only a modest 3.2% percentage technically paves the path to at least $595 to $600, if I consider a 10% potential gain based on the auspicious moment before the next stop point for the bullish attack.
As to the end of July, Meta quarterly results included equity per share of $5.16 vs $4.73 in consensus estimates, on revenue of $39.07 billion vs $38.31 billion expected. $5.18 on revenue of $40 billion is expected in the next release on October 23. Meta previously said that it had 3.27 billion daily active people (DAP), while Facebook alone currently has nearly 3.065 billion monthly active users (MAUs). That’s about 36% of the world’s entire population.
In reality, I have much better, braver aspirations when buying Meta now, because I like the cumulative effect of positive results so that the market ultimately ignored all of its previous objections against this case, in the seeming absence of any visible fresh business reasons for the upside momentum exactly here and now. Unless one counts a dismissal of its shareholders' lawsuit on Apple privacy settings' influence on income from advertisement and the U.S. Senate committee hearing where Meta's President of Global Affairs Nick Clegg displayed good will in not only labelling allegedly fake content about elections but also in suppressing its circulation in Meta-governed social networks.
That's great for Meta business that the company has no communication problems with the currently democratic White House inhabitants. Mark Zuckerberg & Co, with their big money, learned how to bend under censorship requirements in the years of the Covid-19 pandemic, and in 2020 elections, easily adjusting to any kind of the environment. They blocked unwanted users and deleted posts, which the powers-that-be considered as a terrible eyesore to tear it down. It means that the green light from the government would be provided to Meta at least until January. In theory, Mark Zuckerberg & Co may have troubles in the event of a change of power, but I feel that endless political fighting in comments and posts will kick up all kinds of dust for at least another six months.
Even if we assume an almost impossible thing that the transfer of power in the U.S. would take place quietly and calmly, without public objections from the losers, they will certainly continue to appeal to social opinion for a long time. As an absurd example, one may say that Trump's masculine white racists did not allow millions of legal voters to come safely to polling stations, etc. Anyway, there will be a lot of relevant text content and Reels from both camps. Even Trump supporters who prefer to use X (formerly Twitter) and Truth will continue to act and resist on the field of their opponents', which will bring Meta billions of views and billions of dollars for displaying advertisements. These will be later reflected by great quarterly numbers of daily active users and profits, which would bring money not only to Meta, but to its shareholders. This is one more reason why I am going to hold Meta, expecting it will hit much higher targets. For me, a realistic target area is somewhere between $650 and $750. Converting visitors into money is only a matter of technology, which Meta can easily handle.
Investors previously blamed Meta for excessive spending on AI features and the virtual Metaverse, which delayed market cap growth compared to other tech giants like Google or Microsoft. Now the stock finally got a positive momentum to catch up its lost time.
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