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Strength Seen in Meta Platforms (META): Can Its 7.2% Jump Turn into More Strength?

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Meta Platforms (META - Free Report) shares soared 7.2% in the last trading session to close at $170.16. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 17.2% loss over the past four weeks.

Meta is benefiting from steady user growth across all regions, particularly Asia Pacific. Increased engagement for its products like Instagram, WhatsApp, Messenger and Facebook has been a major growth driver.

This social media company is expected to post quarterly earnings of $2.57 per share in its upcoming report, which represents a year-over-year change of -28.8%. Revenues are expected to be $29.03 billion, down 0.2% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Meta Platforms, the consensus EPS estimate for the quarter has been revised 0.9% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on META going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Meta Platforms is part of the Zacks Internet - Software industry. Appian (APPN - Free Report) , another stock in the same industry, closed the last trading session 9.5% higher at $55.04. APPN has returned 9.2% in the past month.

Appian's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.35. Compared to the company's year-ago EPS, this represents a change of -45.8%. Appian currently boasts a Zacks Rank of #3 (Hold).


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