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Meta Stock Rallies as Company Cuts Jobs. Check the Chart.
By Bret Kenwell,
Meta ( META ) has not stopped cutting jobs this year. And for the most part, the stock has not stopped rallying.
The social-media giant's shares sport a year-to-date gain of 60% and have more than doubled (up 119%) off the 52-week low. The rally has made it the best-performing FAANG component this year and over the past three months.
The rally continued on Tuesday, too, as the shares climbed 7.25%. That’s as the company announced another round of layoffs, axing about 10,000 jobs and closing 5,000 open positions that it did not fill.
Understandably, some investors question whether this catalyst is sustainable . At some point, there are no more jobs to cut and the company will have to rely on growth to power the stock higher.
For now the stock is trying to push higher. Can it continue?
Trading Meta Stock
Meta stock erupted in early February as investors cheered the company’s earnings result . The stock enjoyed a one-day 23% rally, adding fuel to the fire in terms of its current rally.
Since then, it has been consolidating sideways, putting in a clear bull-flag pattern on the daily chart (as shown above).
The stock held up well despite Monday's volatility, and the rally on Tuesday powered Meta stock above last week’s high at $190.36. If Meta stock exceeds that mark, it'll be officially in the midst of a weekly-up rotation.
If it can gain momentum, a monthly-up rotation over the February high of $197.16 is in play.