As Apple, Tesla and Microsoft craft new bases and Nvidia clings to support at its 50-day moving average, fellow Magnificent Seven stock Meta Platforms continues to tease the top of its buy range. Building on its momentum after getting featured as the IBD Stock Of The Day last week, Meta stock rose again on Monday.
Meta Stock Showcases Magnificent Mojo
After a sharp sell-off in July and a volatile August, the Mag 7 stocks are getting their mojo back. Apple, Tesla, Microsoft and Amazon.com have their sights set on new breakouts and buy zones. Even Alphabet has started regroup after a 23% drop off its record high in July. On Monday, Google stock tried but failed to close above its 10-week line.
Meanwhile, Meta and Nvidia both earn spots on the IBD 50 and IBD Leaderboard.
Meta stock joined IBD Leaderboard as it cleared a short trendline and the Sept. 6 high of 524.58. Showing resilience, the Facebook WhatsApp and Instagram parent found support at its 50-day line after pulling back as the Nasdaq came under pressure last month.
In another sign of technical strength and resilience, Meta's 21-day exponential moving average crossed back above its longer-term 50-day benchmark on Aug. 22. Showing market leadership, its relative strength line is on the rise.
Meta retook its 542.81 buy point on Sept. 19. On Monday, the stock became slightly extended beyond buy range, but has eased back to now trade within it. Meta closed Monday's session at 564.41, still within the buy range which extends up to 569.95.
While Meta stock teases the top of its buy zone and its all-time high, Nvidia continues to ride right along its downward-sloping 50-day line. The AI leader eked out a small gain on Monday.
Meta Moves Focus From Metaverse To AI
The social media giant has an impressive turnaround story, which is reflected in the stock's huge move off its low in November of 2022. After a big drop in 2022 earnings, Meta continues to post double-digit or better earnings and sales growth.
In the second quarter, the company delivered a 22% year-over-year gain in revenue to $39.1 billion. Earnings rose 60% to $5.16 per share. For the full year, analysts forecast earnings growth of 37% to $21.30 a share, followed by a 14% gain to $24.29 per share in 2025.
Pivoting away from its prior focus on the metaverse, Meta Platforms is investing heavily in artificial intelligence. The company has told investors it expects between $37 billion and $40 billion in capital expenditures this year.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
