The Meta Rise
There has been a rise in share prices for Meta Platforms today, despite two analysts cutting their price targets for the tech company in the past few days.
Rather than paying attention to analysts’ opinions today, investors took their cues from the general market sentiment, which was generally optimistic.
As of 12:24 p.m. ET, Meta was up 4.6% amid gains in the S&P 500 by 1.9% and in the Nasdaq Composite by 2.3%
What’s on their mind?
Today, Morgan Stanley analyst Brian Nowak lowered his price target for Meta’s stock from $300 to $280, but he maintained an overweight rating for the stock. He cited a slower advertising market for this year and next as the reason for lowering the price target.
Credit Suisse analyst Stephen Ju lowered his target on the tech stock from $273 to $245 while maintaining his outperform rating. In addition, Ju believes that macroeconomic issues will slow down ad revenue.
Despite the analysts’ comments, Meta investors ignored them and instead focused on broader market investors being generally upbeat.
And despite the market’s recent volatility, some investors may have already priced in rising inflation, upcoming Federal rate hikes, and a possible economic slowdown.
After falling 49% over the past 12 months, some technology investors might be beginning to look at Meta as having reached its bottom and are anticipating a rebound in the near future.
Should I jump right in?
Despite today’s gains in Meta’s share price, the market is still flooded by a lot of uncertainty, so the increases in Meta’s share price today might not last very long.
The company’s second-quarter results on July 27 will provide investors with a much clearer picture of how Meta is coping with current headwinds.