Meta Platforms Inc (META) - February 2, 2024 (Daily Stock Report)

by SIACharts.com

DAILY STOCK REPORT: META PLATFORMS INC* (META)

SIACharts’ relative strength rankings help investors identify opportunities in stocks which are outperforming their peers or index benchmarks on a relative basis. Outperformance often reflects investor expectations for strong company or sector growth. When earnings season comes along, some companies disappoint investors, and some companies really deliver.

Meta Platforms, Inc.* (META) is up 16% in premarket trading action this morning. Last night, the social media giant crushed analyst expectations (EPS $5.33 vs. street $4.82). More importantly, Meta announced that it is going to start paying a quarterly dividend, a sign from management that it expects to continue earning profits. This move may also make the shares available to investors who only hold dividend paying stocks.

Meta, one of the “Magnificent Seven” stocks, entered the Green Favored Zone of the SIA S&P 100 Index Report in March of 2023 and has remained there to this day finishing yesterday in 4th place. Since entering the Green Favored Zone, the shares are up 103.4%, while the S&P 100 Index is up 33.0% over the same period. Year to date, META is up 11.5% while the S&P 100 Index is up 3.60%.

*Shares of Meta Platforms, Inc. (META) are held in portfolios managed by SIA Wealth Management.

Candlestick Chart Breaks Out:

A major breakout is underway in Meta Platforms* (META) shares. After fourteen months of bear market distribution and fourteen months of bull market recovery accumulation, META shares have finally broken through their September 2021 peak to new all-time highs. The current advance started back in October and accumulation has been quite consistent with the shares establishing a new uptrend of consistently higher lows and closing higher most weeks.

In December 2023, the shares broke out of a sideways consolidation range between $280.00 and $330.00 that had prevailed for six months and have not looked back since. Measured moves from that range suggest potential upside resistance may emerge near $430.00 or $480.00, followed by the $500.00 round number. Downside support tests may appear near the $380.00 or $330.00 breakout points or the 10-week moving average near $360.00.

*Shares of Meta Platforms, Inc. (META) are held in portfolios managed by SIA Wealth Management.

Point and Figure Chart Breaks Out to New Highs:

Meta Platforms* (META) shares recently broke through their September 2021 peak to a new all-time high completing a long road to recovery from a bear market that started back in November of 2022. This recovery trend has unfolded through two large rallies over the first half of 2022, six months of grinding higher at a more moderate pace through late 2023 and the current rally which started in late December.

Horizontal and vertical counts suggest the potential for upside resistance near $454.40 or $472.75, followed by the $500.00 round number. Initial support appears near $365.45 based on a 3-box reversal.

With a perfect SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 10 out of 10, META is exhibiting short-term strength across the asset classes.

*Shares of Meta Platforms, Inc. (META) are held in portfolios managed by SIA Wealth Management.

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

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