Meta Stock Rises with AI Future in Mind

META is the world’s largest social media platform. Its products, including social media, media sharing, messaging, and more, are used by more than 3.3 billion people every day. Meta AI, the company’s AI assistant focused on personalization, is expected to reach over 1 billion users. And the company’s AI continued investments include a new 2-gigawatt data center.

Meta’s fourth-quarter earnings for fiscal 2024 showed strong revenue growth, despite the big capital expenses. Quarterly revenue hit $48.4 billion, a 21% year-over-year jump. And META’s guidance for next quarter’s revenue peaked at $41.8 billion. Its net income was $20.8 billion, or $8.20 per share. Lastly, the company is in a strong position for further investment, with nearly $78 billion on hand.

It’s no wonder META shares are up 22% already this year – and they could rise more. MAPsignals data shows how a rare bullish signal reflects Big Money investors are betting heavily on the forward picture of the stock.

Big Money Loves Meta Shares

Institutional volumes reveal plenty. In the last year, META has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in META shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Meta.

Meta Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, META has had strong sales and earnings growth:

• 3-year sales growth rate (+12.2%)
• 3-year earnings growth rate (+33.2%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +13.7%.

Now it makes sense why the stock has been powering to new heights. META has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Meta has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year. The blue bars below show when META was a top pick…rising with Big Money support:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Meta Price Prediction

The META rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds positions in META in personal and managed accounts at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.