Why Meta Platforms stock just jumped higher

The tech stock is finally making a rebound attempt following its brutal post-earnings sell-off.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Shares of Facebook parent Meta Platforms (NASDAQ: FB) finally got some love today. Following a year-to-date beating that was worsened by the company's disappointing fourth-quarter guidance, the stock rose by 5.37% on Wednesday.

The tech stock was likely up due to a combination of factors, including an upbeat day for the overall market and an analyst's move to reiterate a buy rating for Meta Platforms' shares.

So what

The stock's more than 30% drawdown following Facebook's fourth-quarter earnings report is creating a great buying opportunity, according to Tigress Financial analyst Ivan Feinseth. The analyst has a $466 12-month price target on the stock, as well as a "strong buy" rating. The analyst says that similar warnings of future revenue growth slowdowns in the past proved to present great buying opportunities; Feinseth implies that this situation could prove to play out similarly as it has in the past.

Meanwhile, the overall market is having a good day. As of this writing, the S&P 500 is up 1.1% and the tech-heavy Nasdaq Composite is up 1.5%. This optimism in the market could be bolstering returns for Meta Platforms stock.

Now what

In Meta's fourth-quarter earnings release, the company's CFO guided for top-line growth of just 3% to 11% in Q1. The company expects multiple headwinds to weigh on its business, including the impact of recent changes to the way ads are tracked and measured on Apple's iOS and a tough year-ago revenue comparison. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Daniel Sparks owns Apple. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Apple and Meta Platforms, Inc. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple and Meta Platforms, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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