Meta Stock Price Prediction Ahead of Earnings Call, And Weighing the Odds Of A Rally

Summary:
• Investors are upbeat over Meta stock price ahead of Wednesday's earnings call. However, there could be a surprise package to trigger a rally.

Meta stock price traded at $580 in Tuesday’s pre-market session, having gained 0.3 percent. Investors are upbeat ahead of the company’s quarterly earnings release on Wednesday, October 31, with an eye on its AI ventures. Meta (NASDAQ: META) has gained in each of the last two trading sessions, and its monthly gains stand at 1.4 percent. That points to an underlying bullish momentum that will provide traction to support near-term upward momentum.

Earnings, AI and metaverse to influence stock price

The company has invested heavily in AI, and is one of the leading purchasers of Nvidia’s Blackwell GPUs. In a recent development, Meta revealed that it has signed a deal with Reuters to integrate the latter’s news feed into the Meta AI chatbot.

In addition, it was widely reported on Monday that the company is building its own search engine. Although Meta has not verified the news, its own search engine could help it break away from reliance on Google and Bing, which could strengthen its capacity in the AI race.

The near-term momentum for Meta stock price will certainly be driven by the earnings call. Wall Street analysts forecast the company to report a $40.21 billion and EPS of $5.22, which could shift the focus to the profit margin.

A potential uptick in the Meta stock price could come if there’s a hint of a breakthrough in its troubled metaverse venture. The company announced AI-powered Ray-Ban smart glasses in September, and triggered hope that it could potentially make the metaverse venture viable, after years of hemorrhaging funds.

Meta stock price prediction

The buyers will be in control of the Meta stock price momentum if the buyers keep the action above 578.90. In that case, the first resistance will likely be at 581.00. However, extended bullish control could break above that level and proceed to test 582.85.

Conversely, sellers will be in control if the price breaks below 578.90, and initial support will likely be at 577.55. A stronger downward momentum could break below that level, invalidating the upside narrative. Also, the decline could extend to test the next support at 566.00.