The epic 20-day rally in Meta Platforms (META) stock has come to an end.
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Shares of the social media company closed down 2.8% on Feb. 18, bringing an end to a record setting hot streak that saw the stock rise everyday since Jan. 16 of this year. META stock is down another 2.54% in early trading on Feb. 19 as investors appear to be taking profits after the shares have gained more than 20% to start the year.
Despite the current pullback, Meta’s stock has run circles around the other “Magnificent Seven” technology stocks that include Apple (AAPL), Nvidia (NVDA), Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), and Tesla (TSLA). The rally in META stock had been sparked by catalysts that include a strong earnings report and enthusiasm for the company’s artificial intelligence (AI) strategy.
Out of Gas?
Meta’s 20-day rally this year crushed the company’s previous longest rally that lasted 11 days back in September 2015. It also beat the rallies of other Magnificent Seven stocks, including Tesla, whose shares rose for 13 consecutive days in June 2023, and Nvidia whose biggest run was a 10-day stretch of consecutive gains recorded in November 2023.
It remains to be seen if the current dip in META stock is a brief pause or the start of a more significant downturn. In recent weeks, Meta has announced plans to spend up to $65 billion on AI initiatives this year, including building the world’s longest undersea cable, called “Project Waterworth,” to help support current and future AI projects.
META stock has risen nearly 50% over the last 12 months.
Is META Stock a Buy?
The stock of Meta Platforms has a consensus Strong Buy rating among 48 Wall Street analysts. That rating is based on 44 Buy, three Hold, and one Sell recommendations issued in the past three months. The average META price target of $764.61 implies 9.22% upside from current levels.
