Rolls-Royce share price has pulled back in the past few weeks, moving from the all-time high of 1,306p on January 13 to the current 1,235 as some investors started booking profits. 

US flight cancellations and Middle East tensions

It retreated by over 1.4% on Monday after airlines cancelled thousands of flights in the United States because of the large snowstorm. 

These cancellations will likely have a minor impact on Rolls-Royce Holdings, a company whose revenue growth depends on flight hours.

On the positive side, there are signs that the situation is normalizing, with Sean Duffy, the Transportation Secretary, predicting normal conditions on Wednesday.

Rolls-Royce share price has also retreated amid the rising tensions in the Middle East that may impact the aviation sector. Donald Trump has sent an armada to the Middle East and is actively considering options for Iran. A war in the region would also lead to more disruptions. 

Analysts are optimistic about its growth

City analysts believe that Rolls-Royce Holdings’ business will continue thriving in the coming years. The average estimate among these pros is that its underlying revenue for the last financial year will be £19.5 billion, much higher than what it made in 2024.

Its revenue will then jump to £21 billion this year, £23 billion in 2027, and £25 billion in 2028. This revenue growth will happen as the company’s civil aviation business booms and average flying hours jump.

Most importantly, the management’s efforts are expected to improve its profitability substantially higher over the years. For example, the free cash flow is expected to jump from £3.1 billion in 2025 to £4.5 billion in 2028, a 45% surge. 

The other notable catalyst for the Rolls-Royce share price is that GE Aerospace, its biggest competitor, published strong financial results last week. It said that its orders grew by 32%, while its adjusted revenue rose by 21% and its operating profit jumped by 25% to over $9.1 billion. 

This growth is a sign that the industry is doing well, which is a good thing for Rolls-Royce Holdings.

Is Rolls-Royce a bargain or expensive?

The main concern among analysts is that the Rolls-Royce share price surge has made it a highly overvalued company. Data compiled by Simply Wall St shows that the company is about 25% overvalued based on the discounted free cash flow (DCF) calculation. This estimate places its potential target at 987p.

However, other valuation metrics show that it is an undervalued company. It has a price-to-earnings ratio of 17.8x, lower than its other peers like BAE Systems, Babcock, and GE Aerospace. However, its forward PE ratio of 26 is higher than that of these companies. 

A potential catalyst for the company is that its small modular reactors (SMR) business will continue doing well in the coming years.

Rolls-Royce share price technical analysis

The daily chart shows that the RR stock price has formed a highly bullish pattern that may lead to a rebound. It is now forming a bullish flag pattern, which is made up of a vertical line and a descending channel. 

The stock has remained above the 50-day and 100-day Exponential Moving Averages (EMA) and the Supertrend indicator. Therefore, the most likely outlook is bullish, with the next key target being at 1,306p, its highest point this year. A move above that level will point to more gains, potentially to 1,500p this year.

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BAE Systems share price jas done well in the past few months, moving from a low of 1,588p in December to a high of 2,160p. It then pulled back to the current 1,973p. This article explores why the BA stock may pull back after forming an island reversal and a bearish engulfing pattern.

BAE Systems share price technical analysis 

The daily timeframe chart shows that the BA stock has remained under pressure in the past few days, moving from a high of 2,159p on January 19 to the current 1,973p.

It has formed a series of risky chart patterns, pointing to more downside in the coming weeks. For example, it formed a shooting star pattern on January 19. This pattern is made up of a long upper shadow and a small body.

The stock has formed a bearish engulfing pattern, which is characterized by a big red candle that follows and fully covers a small bullish one. This pattern also leads to a big reversal over time.

Most importantly, the stock has formed an island reversal pattern, which happens after an asset jumps and forms a gap. In this case, this gap happened on January 7 as geopolitical risks rose following Donald Trump’s arrest of Nicholas Maduro.

The two lines of the MACD indicator have formed a bearish reversal pattern and are pointing downwards. Also, the Relative Strength Index (RSI) has moved from the overbought level at 84 to the current 55.

Therefore, the most likely scenario is where the BAE Systems share price continues falling as sellers continue filling the gap, a move that will bring it to the key support level at 1,900p, which coincides with the highest point in October last year.

BAE Systems chart | Source: TradingView

BAE Systems’ business is doing well and has major catalysts 

The bearish outlook for the BAE Systems stock price is based on its technicals. Its fundamentals show that the company is doing well as demand for military equipment in the United States and Europe rise.

Donald Trump has called for defense spending to jump from the current $1 trillion a year to $1.5 trillion, a figure that is much higher than other countries combined. While such a move will hurt America’s finances, it will benefit defense contractors, of which BAE Systems is one of the biggest ones.

Trump has also pushed NATO member countries to boost their defense spending to 5% of their GDP from the current 2%. Such a move will likely lead to more demand for BAE Systems equipment over time.

Index, the most recent results showed that the company’s sales are growing. Its sales rose from £13.4 billion in the first half of 2024 to £14.6 billion, while its adjusted EBIT moved to £1.6 billion from the previous £1.4 billion.

The company ended that period with a backlog of £75 billion pounds and a pipeline of £180 billion. This growth will come from its diverse revenue sources across key industries like electronic systems, air, maritime, cyber, and intelligence, and platforms & services.

At the same time, the company continues to return funds to investors. It returned £1.5 billion to investors through a combination of dividends and share buybacks. 

The next key catalyst for the BAE Systems share price will be its earnings, which will come out on February 18. Analysts expect the results to show that its revenue will be £31 billion, while its underlying EBIT will be over £3.3 billion.

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BT Group share price has remained in a tight range in the past few months as investors assess the recent developments and their impact on its business. It was trading at 182p on Tuesday, a few points below the year-to-date high of 189.45p. So, what next for the shares?

BT Group is facing major headwinds 

BT Group, a top telecom company, is facing major headwinds as competition in the industry rises and its business segment woes continue.

The company’s competition from popular companies like Vodafone, which merged with Three, Virgin Media, and TalkTalk.

Its business segment has been a major disappointment, with its revenue continuing to weaken because of its legacy voice business. The most recent results showed that the segment’s revenue dropped by 2% in the half year to £2.58 billion, continuing a trend that has been going on for years.

BT Group’s other business has continued to slow as woes in its broadband business continued. Its broadband users have been falling, with the management estimating that it had over 900,000 losses last year, which the management attributed to competition and a weak market.

The company’s consumer business continued to weaken, with its revenue falling by 3% to over £4.6 billion, while its international segment revenue dropped by 9%.

The management, led by Alison Kirby, has taken measures to offset the ongoing weakness in its business. She is cutting costs, exiting its unprofitable businesses, and increasing its focus on the UK.

For example, the management recently sold its US federal unit to 22nd Century Technologies as it sought to simplify its business.

City analysts believe that its business continued slowing down in the third quarter of last year. The most recent consensus shows that its upcoming results will show that its sales dropped by 2.1% in the third quarter to £5.07 billion, while its EBITDA dropped by 1.1% to £2.08 billion.

BT Group’s annual revenue will come in at £19.8 billion, down by 3.4%, while its EBITDA retreated to £8.2 billion.

The ongoing slowdown will likely continue slowing down in the coming years as competition from other companies and customer losses in its broadband business continues.

BT Group share price technical analysis 

BT Group stock price chart | Source: TradingView 

The daily timeframe chart shows that the BT Group stock price crashed from a high of 215p in August last year to a low of 170p on November 25.

It then started moving upwards, forming an ascending channel and reaching a high of 188p on January 22nd. This was its highest level since September 30th last year.

BT stock price remains above the Supertrend indicator and the 50-day Exponential Moving Average (EMA).

Therefore, the most likely scenario is where the stock resumes rising, potentially to the key resistance level at 200p. This view will be confirmed if it moves above the upper side of the channel.

On the other hand, a move below the lower side of the ascending channel will invalidate the bullish outlook and point to more downside, potentially to the key support level at 170p, which is about 7% below the current level.

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The recent crypto crash continued on Monday as Bitcoin and most altcoins remained in the red amid rising geopolitical jitters. Bitcoin dropped to $87,380, while Ethereum, Dogecoin, Solana, and XRP fell by over 3% in the last 24 hours.

Crypto crash continues as liquidations jumped 

One key reason behind the ongoing crypto market crash is that liquidations continued rising. Data compiled by CoinGlass shows that liquidations soared by 770% in the last 24 hours to $678 million. 

Ethereum liquidations jumped to over $218 million, while Bitcoin liquidations jumped to $195 million. Solana liquidations jumped to $63 million. The other top liquidated tokens were XRP, Zcash, and Dogecoin.

Liquidations happen when crypto exchanges close leveraged trades when their losses jump and reach the margin level. They close these trades to protect the capital they lend to the traders.

The ongoing liquidations surge coincided with the decline in the futures open interest. Data shows the open interest dropped by 2.15% on Monday to $128 million, down from the October high of over $255 billion.

Open interest refers to the outstanding options contracts in the crypto industry. A higher figure is a sign of higher demand for cryptocurrencies.

Geopolitical jitters are rising 

The crypto crash is happening amid the ongoing geopolitical jitters in the United States and other countries. First, there are signs that the United States will attack Iran this year now that Donald Trump has sent an armada of warships in the region. 

Such a move would lead to higher oil prices and the biggest geopolitical crisis in the Middle East. Data compiled by Polymarket shows that the odds of an attack by June have jumped to 65%.

At the same time, Donald Trump has threatened Canada with huge tariffs because of its recent deal with China. The deal will see China export up to 49,000 vehicles to Canada a year and pay a 6% tariff, down sharply from 100%. This move will benefit top Chinese companies like BYD and Nio.

US government shutdown odds are rising 

The crypto market crash is also happening because of the ongoing jitters on the US government funding. Polymarket data shows that the odds of a government shutdown jumped to over 70%.

These odds rose as protests continued in the past few days after a Border Patrol Agent shot and killed an American. A government shutdown would affect the ongoing economic recovery and lead to more volatility in the market.

The shutdown jitters are rising ahead of the upcoming Federal Reserve interest rate decision. Economists expect the bank to leave interest rates unchanged between 3.50% and 3.0%.

Bitcoin price technicals

The ongoing crypto market crash is also happening because of Bitcoin’s weak technicals. The daily timeframe chart shows that Bitcoin has remained below all moving averages and the Supertrend indicator. That is a sign that bears have remained under pressure. 

Bitcoin has also formed a bearish flag pattern, which happens after a major dip, which is then followed by a consolidation. 

Therefore, there is a likelihood that the BTC price will have a strong bearish breakout, which may lead to more downside among altcoins.

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Solana price dropped to a crucial support level on Monday morning as Bitcoin and most altcoins retreated. It plunged to a low of $117.38, its lowest level in December last year, and 52% below the September high of $253. This article explores why SOL price slumped despite its strong fundamentals.

Solana price dropped as its fundamentals improve 

SOL price remained on edge as third-party data showed that its fundamentals remained strong ahead of the upcoming Alpenglow upgrade, which is set to happen either in February or March.

Data compiled by Nansen shows that Solana’s transactions and fees continued rising in the past 30 days, making it the most active network in the crypto industry.

Solana’s network handled over 2 billion transactions in the last 30 days, much higher than what other networks like Ethereum, Base, and BSC Chain handled. Its active addresses jumped by 43% to over 85.3 million.

This transaction growth was due to its strong performance in the meme coins, decentralized exchange (DEX), stablecoins, and real-world asset (RWA) tokenization industry.

This growth led to a jump in network fees, which is important as Solana burns its fees, reducing the circulating supply. Fees jumped by 53% in the last 30 days to over $21 million, making it the second largest chain after Tron, which made over $27 million in fees.

Solana’s metrics are much better than those of Ethereum by far. For example, while its transaction count jumped to over 2.07 billion, Ethereum handled over 64 million transactions in the same period. Also, its fees were much higher than Ethereum’s 10 million.

More data shows that its DEX network is thriving and beating Ethereum. Its DEX volume rose to $107 billion in the last 30 days, higher than Ethereum’s $45 billion and BSC’s $47 billion. The top DEX protocols on Solana were Pump.fun, BisonFi, HumidiFi, Meteora, Raydium, and Jupiter.

Meanwhile, spot Solana ETFs did better than Bitcoin and Ethereum last week, a sign of resilient demand. These funds attracted over $9.5 million in inflows last week, meaning that they have never had a weekly outflow. In contrast, spot XRP ETFs shed over $40 million in assets last week. Bitcoin and Ethereum ETFs shed over $1.3 billion and $611 million, respectively.

Therefore, Solana’s price is dropping because of external factors, including the ongoing crypto market crash. This decline is happening as investors react to the ongoing geopolitical tensions, as the US builds an armada in the Middle East. Donald Trump has also continued to warn about new tariffs against Canada.

SOL price prediction: Technical analysis 

The three-day timeframe chart shows that the SOL token has crashed from a high of $253 on September 16 last year to a low of $117.38. It has remained below the 50-day and 100-day Exponential Moving Averages (EMA).

The coin has now formed a bearish flag, which happens after a big drop. Its lower side is at $117.38. It has moved below all moving averages and the Supertrend indicator.

Therefore, a drop below the key support level at $117.38 will point to more downside, potentially to the key support level at $95, its lowest level on April 7. Such a drop would point to a 23% decline below the current level.

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Lloyds Bank share price continued its strong rally as investors reacted to the recent US bank earnings and as traders focused on the upcoming earnings and as traders focused on its upcoming earnings. It was trading at 101.65p, up by 75% from its lowest level in April last year.

Lloyds Bank to publish its financial results this week

Lloyds Bank stock remained above the important resistance level at 100p this month as American banks released their financial results, which showed that their businesses continued doing well.

The company will publish its financial results this week, which will provide more information about the fourth quarter and the full year. 

Its consensus numbers show that analysts expect its business to have a strong performance in Q4 as the UK economy stabilized.

The net interest income is expected to come in at £3.54 billion, up from £3.451 billion in the previous one. Its other income, which includes ATM fees, wealth management, service charges, and rent from owned properties, continued rising, reaching £1.55 billion.

If these estimates are accurate, it means that it’s net interest income (NIM) for the year will be £13.648 billion, up from £12.84 billion a year earlier. The other income will be £6.08 billion, up from £5.5 billion from a year earlier.

The consensus report shows that its Q4 profit rose to £1.2 billion, bringing the annual figure to £4.57 billion. 

Lloyds, like other European banks, has benefited from the relatively high interest rates in the UK as inflation has remained at an elevated level. 

City analysts believe that the Bank of England will maintain rates higher for longer as UK inflation has remained much higher than the target of 2.0%. The most recent data showed that the headline Consumer Price Index (CPI) rose 3.4% in December.

The company has also benefited from its cost-cutting measures, including the increasing usage of digital banking technology. City analysts believe that the cost-income ratio dropped to 59.6% in the fourth quarter from the previous 68.4%. This figure is expected to keep going downwards, moving from 60.4% in 2024 to 47.2% in FY’28.

At the same time, the asset quality ratio is expected to keep rising, moving from 0.1% in 2024 to 0.27% in FY’28. More shareholder return data are also expected to keep growing in the coming years, with the dividend per share moving from 3.17p in 2024 to 5.77p in 2028. Its share buyback is expected to move from £1.7 billion in 2024 to £3 billion in 2027.

The other key catalyst for the Lloyds share price will be its falling remediation costs, which are expected to move to £1 billion in 2025 from £899 million in 2024. These costs will be because of the motor insurance crisis. It will then continue falling to £248 million in 2028.

Lloyds share price technical analysis 

The daily timeframe chart shows that the Lloyds share price has been in a strong uptrend in the past few months and is now trading at its highest level since 2008. It has formed an ascending channel and is now hovering near its upper side.

The two lines of the Percentage Price Oscillator have formed a bearish crossover pattern. Also, the Relative Strength Index (RSI) has pointed downwards.

Therefore, the most likely scenario is where the LLOY stock price pulls back after earnings as investors start booking profits. If this happens, the next next key level to watch will be at 95p, the lower side of the ascending channel 

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The USD/CAD exchange rate crashed to the lowest level since January 5 as the US dollar index retreated after the Greenland crisis eased. It plunged for five consecutive days in its longest losing streak since May 2025. 

Donald Trump threatens Canada tariff 

One key catalyst for the USD/CAD exchange rate will be a threat by Donald Trump to punish Canada with a 100% tariff on all its exports to the US, including on goods covered by the USMCA deal he negotiated.

Trump is angry that Canada reached a trade deal with China that lowers tariffs on Chinese electric vehicles to 6%. In exchange, China removed canola tariffs it had put in place a few years ago.

Most importantly, he is disappointed with a speech Mark Carney delivered at the World Economic Forum (WEF) in Switzerland last week. Carney criticized the ongoing power games by the largest economies in the world and asked middle countries to team and respond to these measures.

The statement was mostly targeted towards Trump, who had threatened to take Greenland, a semi-autonomous island with ties to Denmark.

A 100% tariff on goods from Canada would be a big deal because of the vast amount of goods that flow to the United States from Canada. Also, Canada is the biggest US trade partner, buying goods worth billions of dollars a year.

Still, Trump is known for TACO, a phrase that means Trump Always Chickens Out, as he did on the Greenland issue last week. After threatening to take over the island, he reached a deal that brought no major changes to the existing agreement. 

Bank of Canada interest rate decision 

The next major catalyst for the USD/CAD exchange rate is the upcoming Bank of Canada interest rate decision that will come out on Thursday.

Economists believe that the bank will decide to leave interest rates unchanged at 2.25% to give policymakers a chance to digest more macro data.

Recent numbers have sent mixed messages about the Canadian economy. For example, the country’s labor market slowed substantially in December after growing in the previous three consecutive months. At the same time, a report released last week showed that Canada’s inflation rose more than expected in December.

Most analysts believe that the bank will then leave interest rates unchanged at the current level for the rest of the year. In a statement to Reuters, an analyst said:

“At this point, the BoC is ready to take a fairly long wait-and-see stance. If there’s a risk of a move, it’s more likely to be a cut than a hike this year.”

Federal Reserve interest rate decision 

The other major catalyst for the pair will be the upcoming Federal Reserve interest rate decision, which will come out on Wednesday.

Like the BoC, analysts believe that the Federal Reserve will leave interest rates unchanged between 3.50% and 3.75% in this meeting.

The US has released encouraging macro data recently. A report released last week showed that the US GDP expanded by 4.4% in the third quarter, better than the median estimate of 4.3%.

Another report showed that the labor market has started to improve in the past few months, while inflation has been a bit constrained.

USD/CAD Technical Analysis 

USD/CAD chart | Source: TradingView

The daily timeframe chart shows that the USD/CAD exchange rate has been in a strong downward trend in the past few days, moving from a high 1.3925 on January 16 to the current 1.3700.

The pair has dropped below the 50-day and 100-day Exponential Moving Averages (EMA), a sign that bears are in control.

Also, the Relative Strength Index (RSI) and the Percentage Price Oscillator (PPO) have all pointed downwards.

Therefore, the most likely USD/CAD forecast is bearish, with the next key target being at 1.3640.

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The Australian dollar surged to the highest level in years, making it one of the best-performing currencies this year. The AUD/USD exchange rate rose for five consecutive days, reaching a high of 0.6895, much higher than the year-to-date low of 0.6662. 

Australian dollar has surged amid potential RBA and Fed divergence

The main reason why the AUD/USD exchange rate has surged in the past few months is the rising optimism that the Federal Reserve will diverge with the Reserve Bank of Australia (RBA).

Most analysts now believe that the RBA will decide to hike interest rates by 0.25% in the next meeting because of the ongoing performance of the economy.

A report released last week showed that the Australian labor market continued growing in December. The economy added over 60,000 jobs, most of which were full-time. 

It also showed that the unemployment rate improved, while the participation rate rose. Everything in this report was much better than what analysts were expecting.

The next key catalyst that will determine whether the bank will hike rates will be the upcoming Australian inflation report that comes out on Wednesday this week. Economists exect the report to show that the headline consumer inflation rose 0.9 per cent in December, leading to a 3.6% annual increase. 

The closely-watched trimmed and weighted mean CPI number is expected to remain above 3%. Therefore, if these numbers are accurate, it means that the RBA will hike rates from the current 3.6% to 3.85% in the next meeting.

The rising odds of RBA rate hike explains why bond yields have surged in the past few months. Data shows that the ten-year yield rose to 4.85%, its highest point since December last year. 

On the other hand, analysts believe that the Federal Reserve will deliver more rate cuts this year despite the strength of the American economy. The unemployment rate and the headline and core inflation rates are still contained, while the economic growth is strong.

Therefore, the Fed and RBA divergence will create a carry trade opportunity where investors borrow the cheaper US dollar to invest in the higher-yielding Aussie.

AUD/USD technical analysis 

AUD/USD pair chart | Source: TradingView

The weekly chart shows that the AUD/USD exchange rate has been in a strong bull run in the past few months. It jumped to a high of 0.6896, its highest level since September 2024. 

The pair has moved above all moving averages and formed an inverted head-and-shoulders pattern. These patterns often lead to more upside. Also, the Relative Strength Index (RSI) and the MACD indicators have all pointed upwards. 

Therefore, the most likely scenario is where the pair continues rising, with the next key level to watch being at 0.7000. A drop below the support at 0.6680 will invalidate the bullish outlook.

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The S&P 500 Index and its top ETFs, like the VOO and SPY, remained in a tight range near their all-time high last week. It was trading at $6,915, a few points below its all-time high of $6,980. This article explores some of the top catalysts for the index next week.

S&P 500 Index to react to government shutdown threat

The first key catalyst for the S&P 500 and its ETFs, like SPY and VOO, is the latest threat for a government shutdown in the United States. In a statement, Chuck Schumer, the Senate Minority Leader, vowed to block a massive spending package this week.

He wants Republicans to stop funding the Department of Homeland Security after a Border Patrol agent shot and killed an American citizen in the ongoing protests in Minnesota. The government shutdown will likely happen this week.

In most cases, the S&P 500 Index and other US indices like the Dow Jones and the Nasdaq 100 ignore government shutdowns because they always get resolved. For example, they all jumped to record highs after the longest government shutdown happened last year.

Top corporate earnings

The other major catalyst for the S&P 500 Index will be corporate earnings by some of the biggest companies in the United States.

Top members of the Magnificent 7, like Microsoft, Meta Platforms, Tesla, and Apple, will release their numbers this week, while Google and Amazon will publish theirs next week.

These are usually the most important earnings events in the United States because of these companies’size, with their market capitalization rising to over $16 trillion.

Most importantly, these firms are at the forefront of the artificial intelligence (AI) industry and are the biggest clients of NVIDIA, a company that has fueled the boom.

Therefore, a sign that their capital spending will continue will be highly bullish for the stock market. However, a sign that they plan to cut spending will be highly bearish for the market.

Additionally, hundreds of S&P constituent companies like Boeing, UnitedHealth, RTX, Mastercard, Visa, Chevron and ExxonMobil will also release their earnings.

A report by FactSet shows that 13% of the companies in the S&P 500 Index have published their earnings report, with the average earnings growth of 8.2%.

Federal Reserve interest rate decision 

The S&P 500 Index and its ETFs will also react to the upcoming Federal Reserve interest rate decision on Wednesday.

Economists believe that the bank will pause its interest rate cuts by leaving them unchanged between 3.50% and 3.75%. Officials will do that so that their recent cuts can take effect in the United States.

The bank has delivered three cuts in the current cycle, with officials signaling that there will be one more cut this year. Recent macro data confirm that there is no need to cut rates this cycle as the economic growth has accelerated.

A report released last week showed that the US GDP expanded by 4.4% in the third quarter, with analysts expecting it to expand by 5% in Q4. 

US and Canada relations 

The other minor catalyst for the S&P 500 Index is the relationship between the United States and Canada, two countries that do trade worth billions of dollars a year.

In a statement during the weekend, Trump warned that he would implement a 100% tariff on Canada if it inks a trade deal with China. He said that in response to a deal that allows China to ship electric vehicles to Canada and pay a 6% tariff.

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Meta Platforms stock price popped by over 5% on Thursday, adding billions of dollars in value. It rose to a high of $647, up by 11% from its lowest level in November last year. This article explores why the META stock rose and what to expect ahead of the upcoming earnings.

Meta Platforms stock price jumped as analysts remained optimistic 

The main reason why the Meta stock price has rebounded is that analysts are upbeat about the company. In an update on Thursday, Brent Hill, a Jefferies analyst, reiterated his bullish outlook, with his target rising to $910. That forecast points to a 40% from the current level.

Most Wall Street analysts have maintained a bullish outlook, with Rosenblatt hiking the outlook to $1,117, up by 77% from the current level.

Similarly, Cantor Fitzgerald analysts boosted the target for Meta stock price from $720 to $750, while Citizens expects it to rise to $900.

However, some analysts have lowered their targets in the past few days, with Guggenheim reducing the target from $875 to $800. Others who have lowered the outlook are Baird, Wedbush, and Morgan Stanley.

As a result, the consensus price target for the Meta Platforms stock price stands at $821, with 41 analysts having a buy rating and 7 of them having 7 hold ratings. The consensus target is 26% above the current level.

Meta Platforms stock price also jumped after the company announced a new round of layoffs in a bid to cut costs. Data shows that the company will lay off 331 workers in Seattle and 270 in California. Most of these workers are from its Reality Labs business.

Additionally, Meta stock jumped after the company announced plans to start monetizing it Threads product through advertising. 

Meta earnings ahead 

The next key catalyst to watch will be the upcoming earnings, which will provide more information about the company and its growth.

Wall Street analysts are optimistic that Meta’s revenue and profitability growth continued in the fourth quarter as the advertising business boomed. 

The average estimate is that the company’s revenue rose by 20% in the fourth quarter of last year to $58.3 billion, while its earnings-per-share (EPS) rose from $8.02 to $8.2. If accurate, analysts expect that the annual revenue rose by 21.2% to over $200 billion.

Meta Platforms is expected to continue growing this year, rising by 18% to $235 billion. This growth will continue growing even as its key products continue to deteriorate.

For example, Meta Platforms’ Facebook is widely seen as a platform for old people, while Instagram is facing substantial competition from other fast-growing social media platforms like TikTok. Additionally, WhatsApp has become more difficult to monetize despite its popularity.

Most importantly, there are signs that Meta Platforms’ entry into the artificial intelligence industry has yet to become successful, with its chatbots having a negligible market share compared to xAI, ChatGPT, and Claude. 

Meta stock price technical analysis 

Meta stock chart | Source: TradingView 

Technical analysis suggests that the META stock price could be on the verge of a strong rebound in the coming weeks, potentially after the recent earnings. 

It has formed a double-bottom pattern at $598 and a neckline at $710, its highest level in December last year  

Meta Platforms stock has also formed an island reversal pattern, which happens when an asset makes a big gap. In most cases, this gap leads to a bullish reversal.

Therefore, the most likely scenario is where the stock rebounds, potentially to $700 and above after its earnings. However, a drop below the key support at $598 will invalidate the bullish outlook.

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