We identified $665 as the first price goal and, therefore, the next bottom line for the foregoing target zone, with further growth to $700 as the most adequate scenario for Meta shares. This was the main conclusion when then-fresh news was discussed in early May, digesting the social media giant's quarterly earnings report from April 30. In response to very positive combination of profit and revenue numbers, as well as high inner estimates of the company's management and its plans to leverage AI as widely as possible in order to improve ad targeting and day-to-day recommendations to customers, at that exact moment Meta shares were just beginning to bounce from under the technical resistance of $550 to the $600 area. Well-predicted price climbing was so quick that Meta quotes exceeded $660 for the first time in mid-May, but then rolled back from those local peaks by almost $40 in the next couple of weeks. But now they are catching up once again, especially as the newly-baked information background helped to hit a new 2-month high above $670 per share which falls precisely inside our target area.
This is a big win for active investors, but Meta shares are unlikely to stay here for long. Meta got a higher chance to grow even faster than now after Wall Street Journal's (WSJ) unveiling CEO and founder Mark Zuckerberg's intention to fully automate the whole process of advertising via AI features by the end of 2026. Being the parent company of Facebook and Instagram, Meta now feels serious about accomplishing all necessary updates for both brands, according to sources cited by the WSJ article that came out shortly before the opening bell on Wall Street on June 2. The leak said that Meta is going to provide a product image and its budget soon, and AI would take care of each and every stage of ad creation, including video and text generation and very personalized user targeting, capped by suggestions for reasonable budget allocation. Users will see different versions of the same ad in real time, and ad variations will be based on many factors such as personal preferences according to collected viewing data, geolocation etc. And this is critical to reduce the cost of the Meta itself and increase the practical selling effect for advertisers when dealing with huge amounts of accounts and with essentially limitless user resources. Meta’s apps collectively have 3.43 billion unique active users worldwide.
Meta added more than 3.5% to its market caps in a single trading session, breaking above its temporary resistance lines, even despite Tesla and other "Magnificent Seven" stocks slightly dipped amid international trade tensions. Meta now looks even more advanced in terms of its likely growth pace, at least in June, than the rest of tech behemoths like Amazon, Google, Microsoft or Nvidia. The S&P 500 broad barometer managed to rise only 0.3% and tech-heavy Nasdaq futures just over 0.5% during the same day, while Meta soared to new heights. It seems too early to think about taking profits at current levels, it might be appropriate to do it partially later around $700, but Meta's ultimate targets clearly extend above $750 for this year.
