The shares of Meta Platforms have been experiencing an impressive rally since mid-April, fueled by strong quarterly results and positive market expectations. After convincing results in the first quarter of 2025, expectations for the second quarter have risen, further boosting the stock’s momentum.
Technical Analysis
Investors should pay attention to the technical progression of the stock: Important resistances at $600 and $635 have been overcome, and the high from February at around $740 is approaching. A breakout above this point could represent a strong buy signal, while pullbacks ideally should not fall below $700 to avoid a correction to $600 to $635.
Fundamental Support
- Strong advertising business due to AI-driven targeting
- Positive currency effects supporting international revenues
- Stable to growing advertising budgets among Meta clients
- An overall reduced recession risk improving the macroeconomic environment
These factors have led analysts such as J.P. Morgan to raise their price target to $795 and confirm an “Overweight” rating.
Insider Sales
Despite the positive development, Mark Zuckerberg sold shares worth around $1.69 million just before hitting the yearly high at the beginning of July. However, this is not regarded as a negative signal, as he continues to hold significant shares.
For investors, this data reflects an improved investor sentiment, with potentially further price gains, especially if the Q2 results meet high expectations. Pullbacks should be considered, and stop-loss areas set at $700.
Overall, Meta Platforms appears well-positioned for further growth, supported by a strong foundation and positive external factors. Caution is advised, however, given the upcoming earnings release at the end of July.