Shares of American tech giant Meta Platforms (META) rose approximately 3.6% yesterday, continuing their upward trend after gaining about 18% in May.

Why Is META Stock Rising?

Reports emerged yesterday that the company plans to fully automate the ad creation process using artificial intelligence.

According to the Wall Street Journal, Meta Platforms (META) is developing a system that will allow ads to be fully created and targeted using artificial intelligence tools by the end of next year.

How Could AI-Based Social Media Advertising Work?

A brand provides a product image and budget, and Meta’s AI then:

→ generates ads that include images, videos, and text;
→ identifies the target audience across Instagram and Facebook (with a combined audience of over 3 billion users);
→ enables advertisers to personalise ads so that users see different versions of the same ad in real-time, based on factors like geolocation.

Technical Analysis of META Chart

From a bearish perspective:
→ the price has reached a line that previously acted as support but has now shown signs of becoming resistance (as indicated by arrows);
→ the round $700 level is seen as a psychological barrier, which the price failed to break above in February.

From a bullish perspective, a key support zone lies between the psychological level of $600 and the upper boundary of the bullish gap from 12th May around $622.

It’s worth noting that META's stock rally is underpinned by strong fundamentals:
→ the latest earnings report exceeded analysts’ expectations;
→ optimistic revenue forecasts through the end of the year;
→ hopes that trade wars will have minimal impact on social media platforms.

Therefore, it’s reasonable to assume that buyers may retain control and push towards new all-time highs above $700.

Buy and sell stocks of the world's biggest publicly-listed companies with CFDs on FXOpen’s trading platform. Open your FXOpen account now or learn more about trading share CFDs with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.