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FB Stock Price Forecast. Should You Buy FB?

Meta Platforms (FB) Meta Platforms (FB) stock performance has been down to date. Its losses have been nearly twice that of the tech-oriented Nasdaq 100 (US100) Index because the confidence in the company’s capability to continue growing following its radical shift towards the metaverse isn’t at its peak.

Meta Platforms, formerly known as Facebook, has highlighted a number of challenges that could impact the company’s financial performance in the near-term such as the changes to the Apple’s iOS privacy features as well as an increase in rivalry from different platforms, such as TikTok as well as Snap.

In the meantime, macroeconomic conditions across the United States have worsened amid the high rate of inflation of 8.3 percent that has created the market to take a cautious approach participants.

Then, FB stock slightly declined on June 1 after it was announced by the firm that its COO Sheryl Sandberg is leaving the company after 14 years in the position. Javier Olivan, the company’s Chief Growth Officer, will assume the reins, though Sandberg’s duties will be distributed across the structure of the company in a revolutionary plan Zuckerberg has designed to run the company more efficiently.

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“I believe that Meta has reached a stage where it is sensible to have our business and product groups to be better connected, as opposed to having all operational and business functions arranged apart from our products” stated Meta Platform’s chief executive officer Mark Mark Zuckerberg.

What can we expect from this social media stock in light of the current situation and management’s plans to change the business models of its owners?

The article below will analyze the most recent Meta Platforms stock news , along with its fundamentals and price action to present possible FB stock forecasts for 2022and even beyond.

Meta Platforms analysis of stocks: Technical perspectives and price factors

Meta Platform’s decline began in September 2021. The anti-pandemic tailwind which had lifted Meta Platform’s performance waned because of the widespread vaccinations.

The decline increased in November , and reached its peak in February of this year, after the company’s management made negative comments regarding the future of the company in the coming months. Meta Platforms reported a slight decrease in the number of Facebook’s DAU (DAU) during the quarter ending March 2021. It marked the first time this kind of decline had been observed over a long period of time.

Shares dropped over 26% the day the report was announced. The price has failed to rebound.

The 31st of May, Meta Platform announced that it was changing the symbol of its ticker to “META”. The new symbol will be replacing the existing ticker symbol, ‘FB’, since the company’s first public offer (IPO) which took place in the year 2012. The company says: “The new ticker symbol is in line with the company’s change of branding to change its name from Facebook into Meta.”

In the meantime, as of June 8th the price action been on a downward trend and there are no indications that the stock was poised to alter course any time in the near future. Since the beginning of the year with the FB price has declined 42.3 percent compared to 22.8 percent that the Nasdaq 100 index has shed in the same time.

In the meantime, the price of the stock has been hovering around 50% lower than the 52-week high and nearly 31% lower than the 200-day moving average. FB technical analysis revealed that the momentum was not favorable. In the meantime, the Relative Strength Index (RSI) is currently in the 48th percentile (bearish) and hasn’t been able to reach levels of overbought in months. This generally means that the buying rate is a bit low. In the meantime, the Moving Average Convergence Divergence (MACD) is still in negative zone.

Meta Platforms’ fundamental analysis: Recent earnings

On the 27th of April, Meta Platforms reported its financial results for the initial quarter of the fiscal year. In the three months that ended at the 31st of March recorded total revenue of $27.90bn which was an increase of 7 percent year-on-year. In the total, $695 million was derived out of the Reality Labs unit, the metaverse-focused business unit of the company.

Concerning its operational metrics, the number of daily active users (DAP) in Meta’s Family of Apps increased 6 percent compared to the same time one year ago, at 2.87bn. On the other hand the Facebook’s daily active users (DAU) and its monthly active user (MAU) saw a four percentage and 3% growth in both.

The operating income was $8.52bn which is significant decline in the $11.38bn the company earned last year amid greater operating losses from its Reality Labs unit. The result was that Meta’s operating profit fell to 31 percent.

In comparison to the year before the number of employees at Meta increased by 28 percent. The company currently (8 June) has 77,805 employees.

In the final quarter of the quarter, Facebook had no long-term debt and its liquid reserves, comprised of cash, equivalents and marketable securities, stood at $43.89bn. Additionally, the company had the free flow of cash of $8.52bn which was an increase of 9% when compared to the first quarter of 2021.

FB price prediction analyst opinions

The majority of analysts polled by MarketBeat at the 8th of June was positive. Of the 44 firms in the field of financial services giving the stock a rating with an ‘buy’ rating and one a’strong buy rating, 10 held and one’sell’.

Analysts put an average FB price target of $307.3 per share, which would result in a potential 57% gain over its previous final price $195.65. The most expensive twelve-month Meta Platforms share price forecast from analysts was $466 , and the lowest was $220.

Since April this year many analysts have cut their price targets for the company. A notable divergent opinion was from Citigroup that changed Meta Platforms’ rating from neutral to ‘buy’ on 20 April.

The upgrade was made just a few weeks after an American bank published its document Metaverse as well as Money Unlocking the Future that addressed the potential of this emerging sector.

According to Citi the total market that can be addressed in the Metaverse could reach $8trn-13trn by 2030. The amount of users could grow to 5 billion or 65percent of the world’s population.

In the meantime, according to Ali Mogharabi, senior equity analyst at Morningstar the resignation of Meta’s long-tenured COO will not impact the prospects of the company because she “surrounded herself with talented coworkers throughout the years”.

“For this reason, and Meta’s network effect moat source, which continues to draw advertisers to its numerous websites, this news will not alter our fair value estimate for Meta or our excellent assessment of the company’s capital allocation.

“We consider the disappearance of Sandberg as another sign that Zuckerberg and the firm’s emphasis on the metaverse. We do however, think that the Meta leadership team will forget the extent to which the company’s advertising operations have been, and how it can continue to be successful. We believe this is why, Zuckerberg stressed that the company will attempt to combine its different product and business groups. We believe this will allow the company to be more efficient and speedily cross-sell to both users and advertisers which could lead to a faster use for its platform Horizon for both.” Mogharabi added.

Meta Platforms (FB) stock forecast targets for 2022-2025, and beyond

Algorithm-based forecasting tools provided an upbeat long-term bullish Meta Platforms stock outlook at the time of 8 June.

Wallet Investor expected the FB future price of the stock to close in 2022 with $216.180. For the future, they predicted the stock to rise towards $255.966 at the end of 2023 , and reach $335.972 at the end of 2025.

While the service didn’t give price forecasts for 2030 the five-year Meta forecast for stocks predicted it to rise to $389.775 in June 2027.

GovCapital has even more optimistic FB forecasts. The firm suggested that the stock would climb to $253.360 at the close of the year. $520.207 at the close of 2023. $854.200 in December 2024 , and end 2025 with $1,276.429. GovCapital predicted Meta stock to rise to $1,987.827 in June 2027.

These predictions were formulated by algorithms based upon an examination of Meta Platforms’ historical stock price performance. There is no guarantee that value that is FB stock will be at the levels of. Your own due diligence must be done prior to trading in the Meta Platforms stocks.

It is important to note that algorithms-based predictions could be inaccurate. Past performance does not assurance of future results. Make sure to conduct your own research before making any trades. Never trade funds that you are unable to afford losing.