Meta Platforms (NASDAQ: META) has emerged as the top-performing stock among the Magnificent Seven, surging 13% year to date.
While it may not be the most widely discussed AI stock in the current bull market, Meta’s steady gains have strengthened investor confidence.
The stock is now trading at $671.92, up 1.6%, after snapping a five-day losing streak, with the broader AI market rebounding to green today.
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A large part of the stock’s early-year rally was driven by strong Q4 2024 earnings, where Meta reported $48.39 billion in revenue, surpassing estimates, and posted an EPS of $8.02, significantly beating the expected $6.77.
However, Q1 2025 revenue guidance of $39.5 billion to $41.8 billion fell slightly below analysts’ midpoint forecast of $41.73 billion, tempering some enthusiasm.
Despite the softer outlook, CEO Mark Zuckerberg has called 2025 a ‘defining year’ for the company as it ramps up AI investments and engagement-driven growth. Meta plans to invest $60 billion to $65 billion in capital expenditures, focusing on AI infrastructure and expanding its AI teams.
While weaker guidance initially rattled investors, it has done little to shake Wall Street’s confidence in META’s long-term growth trajectory.
Technical analysis spots the big buying opportunity for META
In addition to Wall Street’s bullish stance, technical analyst TradingShot sees more upside for META, predicting the stock could reach $800 in the medium term.
The analysis is based on Meta’s 2-year price pattern, which has consistently followed a Channel Up trend.
In the past, similar pullbacks have led to strong rallies of at least 45%. Recently, META touched its 50-day moving average (MA50) for the first time since January 2 while also seeing its one-day RSI hit previous lows.
If the historical trend holds, this pullback could serve as a springboard for another major rally, with $800 as the next target. For traders and investors, this setup presents a compelling buying opportunity, provided the trend remains intact.
Featured image via Shutterstock
