Meta Looks To Extend Hot Streak — And Retail Isn’t Worried About The Dizzying Levels

Shares of Meta Platforms Inc. (META) continued their rally on Monday, up over 1% after a strong 7.3% gain last week.

The stock is now trading at all-time highs and ranks as the second-best performer among the “Magnificent 7” tech giants this year, trailing only Nvidia.

Above table, as of Sep. 20 close.

Meta’s rise has been fueled by growing investor enthusiasm around CEO Mark Zuckerberg’s shift from augmented reality to artificial intelligence, combined with the Federal Reserve’s recent rate cut.

Citi analyst Ronald Josey on Monday raised Meta’s price target to $645 from $580, maintaining a ‘Buy’ rating.

The brokerage highlighted Meta’s expanding ad load and engagement, which are powered by investments in generative AI, as key drivers of its competitive advantage.

Meta remains Citi’s top pick in the internet sector.

The company’s latest earnings report revealed that AI tools have enhanced content personalization on Instagram and Reels, driving a 6% increase in daily active users — the most in the last eight quarters.  Reels alone is projected to generate $10 billion in revenue for 2024.

Some retail investors appear to be growing cautious, as they believe the stock may be overbought and could be ripe for profit-taking.

But on Stocktwits, sentiment among Meta’s 553,000 followers remains ‘bullish’ (55/100) overall, with many predicting the stock’s level and resistance points.

As the stock pushes toward new highs, all eyes will be on whether it can sustain its run or if a pullback is imminent amid growing profit-taking concerns.

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