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Meta RSI improves from oversold, but investors brace for earnings
Meta’s RSI rose from 31 on July 30 to 48, after a July 29 quarter that included its first EPS miss in 15 quarters.
MarketBeat Ratings points to a rebound in Meta Platforms’ relative strength index, noting the stock’s RSI improved to 48 after climbing from an oversold reading of 31 on July 30. The outlet also contrasts that move with a broader downtrend that dates back to July 15, when Meta’s RSI stood at 66, suggesting overbought conditions at the time.
The article ties the technical shift to recent fundamentals and market reaction. It says shares have fallen roughly 10% since the July 15 RSI peak, and are down about 20% from the year-to-date high reached on Jan. 29, with investors citing concerns around high AI infrastructure capital expenditures.
MarketBeat Ratings highlights what it calls the key earnings backdrop for Meta. In its Q2 results on July 29, Meta reported revenue of $60.8 billion, above analyst expectations of $60.22 billion, and the company said quarterly revenue rose 28% year over year.
The story also notes Meta’s AI-driven improvements and near-term risks. It points to gains from LLM-powered recommendations, including a 15.7% increase in Facebook ad conversions, mentions more than 9 million small businesses using an AI creative tool, and says Advantage+ products surpassed a $75 billion annual revenue run rate. The outlet adds that Meta warned Q2 legal expenses of $2.4 billion could remain a headwind, and that guidance for Q3 revenue is in the $61 billion to $64 billion range.