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The key index rose significantly on Friday, ending the summer’s busiest stock exchange week in the US. The week has contained many hundreds of quarterly results and an important Fed interest rate meeting. Friday’s news that inflation is cooling down fueled investment appetite in New York.
When the stock market day entered the history books, it looked like this:
The S&P 500 index, which aims to capture the entire stock universe, rose around one percent. The industrial companies’ index, the Dow Jones Industrial Average, rose 0.5 percent. And the tech exchange Nasdaq’s Composite index jumped 1.9 percent.
The meta upsurge continues
The pricing of Facebook owner Meta’s equity has not risen less than around 170 percent so far this year. On Wednesday evening, the company presented quarterly figures after Nasdaq’s closing time, and the results were received with applause by investors and analysts. The company reported revenue of $32 billion, which is 11 percent higher than in the same period a year ago, and higher than the expectation of $31.1 billion.
In the two following trading days after Wednesday’s quarterly report, the share has risen close to nine per cent. However, that is not enough, according to the analysts who cover the company.
It is just over 11 years since the share was listed on the stock exchange, and in the first year the share traded for around 30 dollars. Today the rate is on Friday the rate is 325 dollars. The strong price increase in the last six months has contributed to the price approaching the average analyst’s price target.
But, Bloomberg’s overview shows that 45 analysts have updated the models since Wednesday, and their recommendations are pretty clear:
Only one says outright that the share should be sold. Only four have a neutral view of the stock. In other words, nine out of ten recent analyst updates say “buy”.
On average, the 45 analysts have a price target of $371, which is 15 percent above today’s Meta price. The analysts can show that Meta’s balance sheet contains $53 billion in cash, which could mean further shareholder-friendly share buybacks.
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Tek shares’ return
When the corona pandemic broke out, the Fed quickly cut interest rates twice, lowering it from 1.75 to 0.25 percent. But when the effect turned out to be quite good a year ago, and high price growth had to be countered by higher interest rates, it had consequences for many people. Including the shareholders in the tech companies.
The Nasdaq Composite index fluctuated over 16,000 points in November 2021:
Four months later, the Fed raised interest rates for the first time, and then it went from blow to blow and the fall of tek shares followed the development in parallel. Right up until investors were led to believe that the interest rate peak was within reach last autumn.
With that, investors started buying tech shares again, and the Nasdaq Composite has now risen 37 percent since the new year. (Terms) Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using links, which lead directly to our pages. Copying or other forms of use of all or part of the content may only take place with written permission or as permitted by law. For further terms see here.
2023-07-28 20:02:36
#ten #analysts #buy #Meta #share
