Meta Platforms, Inc. (NASDAQ:META) shares are trading lower Wednesday as the broader market pulls back.
The Details:
The Nasdaq Composite is trading lower by nearly 400 points Wednesday following disappointing earnings from Tesla and Alphabet on Tuesday. Investors may be considering whether the mega cap tech stocks, including Meta, can continue to support a large percentage of the overall market's growth.
What Else:
Meta announced the launch of its latest version of its "Llama" AI software on Tuesday which the company touts as the first openly available model that rivals top AI models in general knowledge, steerability, math, tool use and multilingual translation.
Llama's software is used to power "Meta AI" a chatbot currently available to users throughout Meta's suite of applications, including Facebook, Instagram and WhatsApp.
In connection with Meta's latest Llama release, NVIDIA Corp (NASDAQ:NVDA) announced a new AI foundry and NIM inference microservices for the collection of openly available AI models.
"The new Llama 3.1 models are a super-important step for open source AI. With NVIDIA AI Foundry, companies can easily create and customize the state-of-the-art AI services people want and deploy them with NVIDIA NIM. I'm excited to get this in people's hands," said Mark Zuckerberg, founder and CEO of Meta.
META Stock Prediction 2024:
Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.
Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Meta Platforms, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For Meta Platforms, the 200-day moving average sits at $428.25, according to Benzinga Pro, which is below the current price of $471.94. For more on charts and trend lines, see a description here.
Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.
META Price Action: According to Benzinga Pro, Meta Platforms shares are down 5.45% at $462.06 at the time of publication Wednesday.
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