The title Meta (Facebook) could regain height this summer
The title of the social networking giant Meta Platforms, formerly better known as Facebook, is trying to regain height in the short term. META stock is up 16% since the start of the week after falling to a more than two-year low below $160 the previous week.
Meta’s rebound can be explained by a renewed risk appetite among traders across markets since the start of the week amid a lower than expected rate hike from the Fed. Several governors, including two particularly hawkish, hinted that a 100 basis point rate hike at the next meeting next week was not on the table.
META stock could continue to benefit from the renewed risk appetite in the coming weeks, but the underlying outlook remains bearish, as the growing risk of recession will increasingly weigh on companies’ growth prospects and therefore on stock market prices of risky assets.
Furthermore, the Meta Group will release its quarterly results next week, which could reignite volatility and even invalidate the bullish outlook if the results are disappointing, especially if the number of active users on the platform is lower than expected.
Meta Platforms stock price weekly chart – key levels