Meta Platforms Inc (NASDAQ:META) saw its stock price advance on Monday, propelled by a wave of optimistic analyst evaluations. Investors responded favorably to reports underscoring the company’s strategic direction and financial outlook, contributing to an increase in buying activity.
Analyst Recommendations and Price Target Adjustments
One of the prominent analyst upgrades came from James Cordwell of Rothschild & Co, who revised his rating on Meta from Neutral to Buy. Cordwell simultaneously raised the firm’s price target on the shares from $740 to $900, emphasizing significant growth potential beyond the current share price levels. According to Cordwell, despite concerns around Meta’s escalating expenditures, the substantial upside makes the risk appealing.
Citing CEO Mark Zuckerberg’s aggressive pursuit of advancements in artificial intelligence "regardless of costs," Rothschild anticipates Meta’s total expenses in fiscal 2026 will climb to approximately $158.6 billion, surpassing consensus estimates. In addition, the capital expenditure projection was increased to $117.1 billion. Despite these elevated cost expectations, Rothschild remains optimistic about Meta’s long-term worth relative to short-term risks, particularly given the stock’s trading near $650 at the time of the assessment.
In parallel, KeyBanc’s Justin Patterson reaffirmed an Overweight rating on Meta but marginally decreased his price target from $875 to $835. Similarly, Rohit Kulkarni of Roth Capital maintained a Buy rating while lowering his target price to $800 from $845. These adjustments reflect a cautious but positive stance amid current market conditions.
Technical Indicators Signal Bullish Momentum
From a technical perspective, Meta’s shares are currently trading above key short-term moving averages, suggesting prevailing bullish sentiment among market participants. The stock price exceeds the 20-day simple moving average (SMA) by 4.7% and the 50-day SMA by 5.4%, indicative of upward momentum in the near term. On the other hand, the price remains slightly below the 100-day and 200-day SMAs, signaling that while momentum is improving, longer-term trends require monitoring.
Key oscillators paint a balanced but positive picture. The Relative Strength Index (RSI) holds a reading of 56.89, squarely in neutral territory, which indicates modest buying pressure without the typically associated risk of an overbought condition. This positioning allows room for additional price gains without immediate concern for a sharp reversal.
Moreover, the Moving Average Convergence Divergence (MACD) indicator is positioned above its signal line, pointing towards reinforced bullish momentum on a short-term basis. Technical support for the stock is identified near $638.50, while resistance pressure is observed at approximately $711. An approach toward support could prompt prudence among traders due to the possibility of trend reversal, whereas surpassing resistance may herald a fresh upward trend.
It is notable that in December, Meta experienced a "death cross," where the 50-day SMA fell below the 200-day SMA. This event commonly signals a potential shift in market trend, warranting close observation of price behavior in subsequent weeks and months. Over the past year, Meta’s share value has posted a moderate gain of 2.17%, reflecting a relatively stable but unexceptional performance. The current stock level rests at 61.5% within its 52-week trading range, positioning it closer to recent highs than lows, which might imply some proximity to resistance levels that could influence future price action.
Trading and Market Data
At the time of the market close on Monday, Meta’s stock was trading at around $672.28, marking a 2.05% increase for the day. This movement echoed the overall favorable sentiment backed by recent analyst reviews and technical indicators.
Overall, Meta Platforms’ shares are exhibiting signs of robust investor confidence fueled by analyst upgrades and supportive technical signals. While elevated spending projections introduce elements of caution, the company’s strategic focus on disruptive technologies such as artificial intelligence continues to underpin expectations of long-term value creation.