Meta Platforms (META) gapped up on earnings on Feb. 2 and is holding its gains. Now, shares are trying to form a three-weeks-tight pattern with a buy point of 485.96, making Meta stock Thursday’s pick for IBD 50 Stocks To Watch
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In the quarter ended Dec. 31, sales grew 25% to $40.1 billion but earnings of $5.33 per share surged 203%. According to IBD MarketSmith, volume was the highest since the stock formed a base as it gapped up on a “monumental” quarter.
The company also announced a dividend of 50 cents payable to shareholders of Meta stock on record as of Feb. 22. It is the first time the Facebook parent is paying out a dividend.
For the current quarter, the company expects sales of $34.5 billion to $37 billion, beating analyst estimates of $33.9 billion. Meanwhile, Chief Executive Mark Zuckerberg said that Meta would focus on making more artificial intelligence products such as AI assistants.
Also, analysts at Stifel increased their price target to 527 from 405 after the earnings report.
Meta Stock Rises As Broadcom Chief Joins Board
On Wednesday, Meta announced it would add two directors to its board as Sheryl Sandberg, former Meta chief operating officer, steps down from the panel. According to reports, Broadcom‘s (AVGO) CEO Hock E. Tan and John Arnold, co-founder of Arnold Ventures will join the board as the company focuses on silicon and energy infrastructure.
Meta is one of the “Magnificent Seven” stocks and has strong ratings from Investor’s Business Daily. It has a best-possible Composite Rating of 99 while its EPS Rating of 96 and Relative Strength Rating of 97 are not far behind.
Further, fund managers are clearly bullish on the stock as well and have been buying in recent weeks, going by Meta’s Accumulation/Distribution Rating of B. Meta stock also is a holding on IBD Leaderboard
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