Meta Stock Tests Resistance Ahead of Critical Q3 Earnings Report
Meta Platforms' stock is currently testing key resistance levels ahead of its Q3 earnings report on October 28, 2026. The stock opened on October 6 at $746.13, a 2.73% surge, and is now pressing against immediate resistance at $754.82 and a harder ceiling at $763.50. Institutional investors are accumulating quietly, with open interest jumping 7.31% in 24 hours, but conviction on direction remains muted. The stock's 24-hour range of $725.57 to $748.88 highlights the battle lines, with the potential for an 8-10% swing in either direction post-earnings.
The technical outlook for Meta is bullish on the medium term, with the stock sitting $96 above its 50-day simple moving average. The MACD histogram is flat at zero, indicating short-term momentum is idling, while the RSI at 64.10 keeps the stock well clear of overbought territory. The Bollinger Band positioning suggests there is room to extend if a catalyst ignites, with the upper band at $784.14 aligning with the analyst consensus price target cluster.
Q2 2026 was a mixed bag for Meta, with revenue hitting $60.8 billion, up 28% year-over-year, but diluted EPS coming in at $6.18, well below analyst expectations. Total costs and expenses surged 55% year-over-year to $42.03 billion, driven by legal charges, severance costs, and heavy AI infrastructure spending. Free cash flow plummeted 91% year-over-year to just $784 million. The stock's subsequent recovery to $746 is a testament to the underlying advertising franchise's strength.
Looking ahead, analysts are divided on Meta's prospects. The average rating is 'Strong Buy' with a 12-month stock price target of $793.91. Recent calls include Morgan Stanley maintaining a Buy rating at $775 and DBS holding a Buy rating at $883, while Scotiabank remains skeptical with a Hold rating and $600 target. The bull case sees Meta breaking through $763.50 with conviction and targeting $784, $800 if Q3 EPS clears $7.00 and operating margin shows recovery. The bear case sees a potential repricing toward $680, $700 if there's a second consecutive EPS miss.