Meta Platforms: You haven’t seen anything like this in a long time!

Interesting Sentiment at Meta Platforms

The basis of investor sentiment is discussions and interactions of market participants in social media around the stock market. Meta Platforms has been discussed particularly positively over the past two weeks. On eight days, the discussion was mainly dominated by positive topics, while on one day negative communication prevailed. In the past one or two days, there are no particularly positive or negative topics that investors are interested in. Based on this sentiment, the stock gets a “buy” rating today. Deeper and automated analysis of communications has revealed that “Buy” signals have been the primary focus lately. This gives Meta Platforms an overall “Buy” rating based on the investor sentiment barometer.

Price picture of Meta Platforms disappoints

Trend-following indicators are supposed to show whether a security is currently in an upward or downward trend (see Wikipedia). The moving average is one such indicator, and here we look at the 50- and 200-day moving averages. First, let’s take a look at the longer-term average over the last 200 trading days. For Meta Platforms stock, this is currently $171.16. The last closing price (111.41 USD) is thus significantly lower (-34.91 percent deviation in comparison). On this basis, Meta Platforms thus receives a “sell” rating. Now let’s take a look at the shorter-term 50-day moving averageThe last closing price for this value (122.69 USD) is also below the moving average (-9.19 percent), thus Meta Platforms shares receive a “Sell” rating for this value as well. In sum, Meta Platforms is assigned a “Sell” rating based on trend-following indicators.

What are the analysts’ views?

Out of a total of 31 analyst ratings from the past twelve months for Meta Platforms stock, 25 ratings are “Buy”, 6 are “Hold” and 0 are “Sell”. On average, this means a “Buy” rating for the security. On a short-term basis, based on available research over the past month, the stock is considered a “Buy”. During this period, 1 analysts rated the stock as Buy, 1 as Hold and 0 as Sell. Based on the price targets given, the average is calculated to be $300.21. This means that the share could rise by 169.47 percent from the last closing price (USD 111.41). The recommendation derived from this is “Buy”. In summary, Meta Platforms thus receives a “buy” rating from the analysts.

Sentiment clearly clouded

An important contribution to the assessment of a share is also provided by a longer-term view of communication on the Internet. For this purpose, we considered both the criterion of discussion intensity, i.e. the frequency of messages, and the rate of change in sentiment. Meta Platforms showed interesting characteristics in this analysis. The discussion intensity changes strongly, as significantly less activity is seen. This results in a “sell” rating. The rate of change in sentiment remained low, with hardly any changes identified. From this, the editorial team again derives a “Hold” rating. The bottom line is therefore a “Sell” rating.