Shares of Meta Platforms (META 1.54%) jumped this week on no company-specific news. Instead, Meta's gains came as the broader market indices rose as investors shrugged off some of their previous concerns about inflation and the economy and started snatching up shares of technology companies again. As a result, Meta's stock climbed 4.4% this week, as of this writing.
Meta's big jump this week occurred on Tuesday as the tech-heavy Nasdaq Composite spiked 4.7%. In response, Meta's stock popped 8.7%, though the company gave up some of those gains later in the week.
Investors were generally optimistic about tech stocks this week, with some potentially believing that the tech sell-off that's occurred in the market over the past year may have finally reached its bottom.
Investors have been generally pessimistic about technology stocks as they worry that inflation, higher interest rates, and a potential economic slowdown could hurt companies' top and bottom lines.
Even a handful of price-target cuts for Meta didn't hurt the stock this week. Analysts at Credit Suisse, Morgan Stanley, and Deutsche Bank all lowered Meta's price target over the past few days while maintaining their respective outperform, overweight, and buy ratings on Meta's shares.
While Meta's share-price gains this week is great to see, investors should keep in mind that the market remains very volatile right now. For example, Meta's stock was falling about 5% this morning after Snap reported disappointing quarterly results. The drop, in response to another social media company's financial report, shows just how persuasive any bad news can be to investors right now.
Meta investors will get more insight into how the company is doing and any new strategies to weather potential headwinds when it reports its second-quarter results on July 27.