Meta Platforms Inc (NASDAQ: META) surged remarkably in 2023, marking its most stellar year since its 2012 stock exchange debut.
The tech giant outpaced the S&P500 and Nasdaq100 Index, leveraging the booming tech sector. An evolution propelled by Artificial Intelligence underpinned its unprecedented 194.13% market value surge in 2023. Behind this success lies strategic restructuring efforts, involving three rounds of layoffs, reshaping the organization, and notably trimming over 20,000 jobs.
The restructuring, initiated in late 2022, bolstered Meta’s operational efficiency, culminating in a leaner structure and amplified operating margins. Leveraging AI, Meta optimized user experiences on platforms like Facebook and Instagram, witnessing significant engagement spikes. Financially, the company saw a substantial upturn: a 23% revenue surge to $34.15 billion and an astounding 143% surge in operating profit to $13.75 billion year-over-year in the last reported quarter of 2023. This transformative journey propelled Meta’s operating margins to an impressive 40.36% by Q3 2023.
Meta’s stock showcased a compelling trajectory, maintaining an uptrend above its 100-day moving average. After a slight dip, recent movements revealed a sturdy support level around $313.66 per share. However, the subsequent climb encountered resistance at $361.90 per share, coinciding with overbought RSI conditions, prompting a reversal.
This downturn led the stock price near the 50% Fibonacci Retracement level, signalling a critical juncture. If this level holds as interim support, a potential resurgence might retest the $361.90 per share resistance level. Conversely, should bearish pressures escalate, the 61.80% Golden Ratio could emerge as a focal point of interest for downward momentum. In case of a breakdown below the Golden Ratio, the $313.66 per share support level could serve as a barrier to further downside pressures.
Meta’s extraordinary 2023 growth stemmed from strategic restructuring and AI innovations, propelling revenue and operational margins to unprecedented heights. Despite recent price reversals near key levels, support at $313.66 and Fibonacci markers highlight crucial pivot points.
Sources: Meta Platforms Inc, Reuters, TradingView
Piece Written By Nkosilathi Dube, Trive Financial Market Analyst
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