Meta shares hit a new record high Friday as investor optimism about the tech giant’s AI opportunities runs high.
Meta Platforms (META) shares reached a new record high Friday, continuing their strong 2024 rally as investor optimism surrounding the tech giant’s AI and metaverse innovations remains strong. Meta’s recent showcase at its Connect conference highlighted its latest advancements, spurring investor confidence in the company’s ability to leverage AI to drive engagement and market share gains in search and social media.
Meta shares climbed 0.4% to $585 in midday trading on Friday, marking a 65% gain so far this year, significantly outpacing the broader market with the S&P 500 up just 20% over the same period. Pivotal Research’s Jeffrey Wlodarczak’s recent “buy” rating on Meta stock has further bolstered the company’s momentum, citing the firm’s AI initiatives as a key driver of future growth.
Strong Momentum, But Overbought Conditions Signal Caution
While Meta’s stock is enjoying bullish momentum, technical indicators like the relative strength index (RSI) suggest the stock is in overbought territory. This could open the door to short-term profit-taking, especially with declining trading volumes signaling a potential slowdown in the uptrend.
Key Retracement Levels to Watch
Investors should monitor key retracement levels as the stock’s uptrend cools. The $535 level represents a critical support region, previously a resistance point near Meta’s breakout from an ascending triangle pattern. If this support fails, a further decline toward the $480 level could occur, where the 200-day moving average would likely provide buying support.
Bullish Price Targets to Monitor
For investors still bullish on Meta, technical analysis reveals potential upside targets. Using historical price patterns, we can forecast Meta reaching $700 based on the measuring principle, adding $165 to the breakout point at $535. Another target at $790 can be projected using a bars pattern overlay, aligning with the stock’s upward move from December to March, suggesting a similar rally could unfold into December.
As Meta’s stock continues to ride AI-driven enthusiasm, investors should remain vigilant about these key price levels and be prepared for potential profit-taking in the short term.
