The so-called ‘Inverse Cramer’ effect appears to have struck once again in October, as Meta (NASDAQ: META) stock suffered a sharp 15-day drop immediately after the popular TV host gave it a decisive endorsement.
Indeed, reacting to Muse artificial intelligence’s (AI) user retention data on October 12, Jim Cramer described META shares as a ‘monster long’, signaling his confidence in the long-term potential of the equity.
At the time, the blue-chip technology giant was trading at $742.96, and it fell 16.52% to $620.19 by the latest, October 27 close.
Under the circumstances, the common online joke that investing against Cramer’s advice is the wiser move appears to have proven correct since $1,000 invested in Meta stock on October 12 would have fallen by $165.20 to $834.80 by last night.
Additionally, META equity’s modest 0.29% rise to $621.97 in the Wednesday, October 28 pre-market would have changed little.
Meta stock price outlook
Meanwhile, the ‘inverse Cramer’ effect appears likely to remain in play for Meta shares in the short term, though the long-term outlook, at least according to other institutional experts, might justify the ‘monster long’ assessment.
To begin with, technical analysis (TA), primarily based on oscillators and moving averages (MA), indicates that the technology giant remains a ‘Sell’ for the time being.
Specifically, the stock’s performance in the last day and week of trading indicates META remains a ‘Sell’ though, notably the monthly readings that Finbold retrieved from TradingView on October 28 position it as a ‘Buy’.
Wall Street, on the other hand, is almost universally bullish regarding Mark Zuckerberg’s company in the next 12 months. Overall, the equity is viewed as a ‘Strong Buy’ and is expected to rally 37.46% to $852.50 within the timeframe, according to the consensus displayed on the stock analysis platform TipRanks.
Lastly, this optimistic tone was evident in the last week as well, despite Meta’s decline in the second half of October, with Oppenheimer, Wedbush, and Scotiabank being the only ones to refrain from assigning it a ‘Buy’ rating and opting for a ‘Hold’ recommendation instead.
Featured image via Shutterstock
