Meta Platforms (META) -) is a FAANG stock enjoying a renaissance this year. After falling over 70% in 2022 through last fall, Meta's shares have skyrocketed 250% since November's low.
Given the company's heavy reliance on economically-sensitive ad revenue, the resurgence in Meta's stock likely has shareholders scratching their heads.
Can Meta's stock continue climbing, or has it seen its highs?
Meta's Financials Rebound
Meta may be best known as the parent company of the social media goliath Facebook. However, its family of apps also features Instagram, WhatsApp, and, recently, Threads.
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It also owns what was once known as Oculus, a manufacturer of virtual reality headsets (now simply known as Meta), but most of Meta's revenue and profit comes from advertising on its social media platforms.
Last year, worry over a slowing economy caused companies to tap down ad spending. Advertisers remain cautious, but Meta's ad revenue is rebounding.
After seeing year-over-year revenue decline for three consecutive quarters to finish 2022, Meta's sales increased by 3% in Q1 and 11% in Q2. Its recovery will likely be a boon to earnings as revenue growth is leveraged against last year's cost-cutting.
Earnings per share grew 21% in Q2, following a year-over-year decline of 19% in Q1.
Meta’s Stock Chart Results in a New Price Target
Technical analysis is valuable because it reflects the opinions of all market participants, including major mutual funds and hedge funds that have access to resources unavailable to individual investors.
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By tracking price and volume and relying upon technical analysis tools, such as momentum indicators and trendlines, investors can more easily spot stocks under accumulation by these funds. Point and figure charts can also be used to determine potential price targets.
Given Meta's stock rallied following its second-quarter earnings, Real Money technical analyst Bruce Kamich reviewed Meta's charts for clues into what's next.
Kamich’s evaluated charts for professional investors for over 40 years. He considered the stock’s price action, volume trends, and momentum. Then, he calculated new price targets based on daily and weekly point and figure charts.
Kamich views the action in Meta's stock price favorably, particularly its weekly chart.
"Prices are trading above the rising 40-week moving average line. Some of the recent candles show us upper shadows, but Thursday's rally should refresh the uptrend and likely give us a white (bullish) candle. The weekly OBV line is bullish, and so is the MACD oscillator," writes Kamich.
Kamich last calculated a point-and-figure price target for Meta stock on July 6. At the time, he recommended shareholders sit tight, given a target of $316 per share.
We've nearly achieved that target, so what's Kamich think is possible for Meta stock now?
He's upgraded his price target to $340. But that may not be the top for Meta shares.
"My next price targets are $340 and then $380, followed by the round number of $400," says Kamich.
