Thinking of buying Facebook ($META)? I’ve got your analysis right here! I’ll tell you exactly what to do…and why!! – January 6, 2025
Dan Fitzpatrick here at StockMarketMentor.com, and this is Fitz In Five. I want to look at Meta ( NASDAQ: META ) today.
If you’re an investor just about any day is a good day to buy Meta ( NASDAQ: META ). The trend just continues to be strong here. If you look at the blue line, that’s the 40-week or 200-day moving average. This stock doesn’t even come back to test that. It did in August for a cup of coffee but this just keeps trending higher and pulling the 200 along with it.
It really bounces around the 50-day or 10-week moving average here. That’s all well and good, I think you can buy this at 634.30 and do just fine. I’d prefer a pullback maybe on a bad day in the market or something, where you get this pulled back a little bit closer, say, to the beginning of this week, which is like 612.00, something like that. That would be my best entry.
However, let me show you why you’re probably not going to get that entry. If you do, by the way, take it. You could thank me later. But this is what I’m seeing here on the daily chart. These are just various stops and various other things that I’ve had. But I want you to focus on this, 653.57, that’s the consensus price target of all the analysts covering this.
This was as of December 3rd, so it was a month ago when the consensus price target was 653.57. The thing that I noted back then was, analysts don’t like to be behind the curve. And so that was a price target that was close enough to where the chart is now that you can look at it and it’s almost like a reliable indicator that we are going to start getting analyst’s upgrades.
On a stock like Meta ( NASDAQ: META ) you are not going to have some dude have a strong buy on the stock with a 620.00 price target, that’s just not the way it works. Not even analysts are that stupid. Typically, what happens is, as a stock starts to close in on an analyst’s price target, which by the way, makes that analyst look pretty darn smart.
If they’ve got a price target, a consensus price target or 653.57, and by the way, that means that some are higher and then some are lower. But if my price target is 653.57 and the stock starts to move up here, I’m starting to feel pretty good. I had a high price target, now the stock is coming up to hit my price target.
And so that analysts and institutions, traders are going to start feeling pretty comfortable. And so they’ll start raising the price target. It’s like as an analyst they’re a winner, this is a winner, this is a good “trade”, it’s a good target, the stock is hitting it. And so in the weeks to come you will start seeing analysts raise their price target, particularly since earnings are just a month away.
As this stock starts to run up into earnings, and I believe it’s going to, as it starts to run up into earnings you are going to see price targets elevated. You’re going to see 660.00, 670.00, 680.00. You’re going to see those price targets start to be jacked up. And with that the price of Meta ( NASDAQ: META ).
I think even though the stock is right at prior resistance here, and it’s up quite a bit over the last several days, over the last four days, the stock is up 8 percent, which for a stock like Meta ( NASDAQ: META ), that’s a lot. It’s begging for a little bit of a pull back. I would say, if it does pull back it’s a gift. Take the gift and say, Thank you very much, and buy the stock.
If, on the other hand, the stock starts moving higher, I would say, “Thank you very much, sir, I’ll take some.” and then I’ll wait for a pullback to add. Either way, in my book, and by the way, few people dislike Zuckerberg more than I do, but I do like making money more than I dislike Zuckerberg. So with that acknowledged, if the stock runs up, buy the stock.
If the stock pulls back, buy the stock, just make sure you have some kind of a risk profile. You want to know exactly how much you’re risking, I’m buying it here, where am I going to put my stop? What are the maximum dollars that I will lose, stuff like that? You’ve got to be doing that, but generally speaking this weekly chart controls.
So unless you’re a swing trader wanting to make money, I’m buying it on Tuesday, where’s it going to be on Thursday? Unless you’re that kind of trader, why don’t you just take a position in Meta ( NASDAQ: META ) and then let the stock do what it’s going to do because it’s ultimately going to go higher.
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