After Meta’s Recent Pullback, Most Retail Investors Expect Stock To Stall Downtrend In New Week

Meta Platforms, Inc. (META) stock has shed nearly 8% from its all-time intraday high of $740.91, which it reached on Feb. 14. Retail investors are bracing for more pain in the near term.

A Stocktwits poll found that 45% of the 1,600 respondents predicted a “significant” 10-15% pullback. The poll was initiated just after the Meta stock snapped its record 20-session winning run.  A sizable 35% expected a consolidation move in the near term before the stock takes off.

While 15% hoped for a blastoff to the $800 mark, the remaining 5% rooted for an extended “sideways” action. 

Meta’s fundamentals have improved since bottoming in 2022, thanks to a resurgence in ad spending, efficiency measures implemented by the company and its artificial intelligence initiatives.

The company reported better-than-expected December quarter results in late January, thanks to a surge in advertising revenue to $48.39 billion. The company issued lukewarm guidance and projected a substantial increase in its capital spending plans to $60 billion to $65 million from $39.23 billion in 2024.

Meta trades at a forward P/E multiple of 26.88, with the valuation reasonable relative to the S&P 500’s 30.09. 

Retail sentiment toward the Meta stock among Stocktwits users remained ‘bullish’ (59/100), but the message volume stayed low. 

A watcher said Meta stock will, without any doubt, trade back above $700 this week.

Another said the stock is at bargain basement price following the recent pullback. 

After rising 66% in 2024, Meta has rallied 16.7% so far this year. The TipRanks-compiled consensus stock price target for Meta stock is $746.61, suggesting roughly 12% upside potential.

For updates and corrections, email newsroom[at]stocktwits[dot]com. 

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