Major Stock Indexes Decline Amid Energy Supply Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 28 2026
0mins
Should l Buy META?
Source: CNBC
- Meta Oversold: Meta's relative strength index (RSI) dropped to 22.1 after losing two major court cases and shedding over 11% of its stock last week, indicating a pessimistic market sentiment that may prime it for a near-term rebound.
- Court Rulings Impact: A California jury ruled that Meta and YouTube were liable for harmful addictive features on their platforms affecting minors, with Meta ordered to pay $2.1 million in damages, intensifying investor concerns about its business model.
- Layoff Measures: Meta's layoffs across Facebook, global operations, recruiting, sales, and Reality Labs aim to alleviate investor anxieties over its frequent and costly corporate strategy shifts, potentially impacting its long-term growth prospects.
- Energy Stocks Overbought: Energy companies like APA, with an RSI of 87.8, saw stock prices jump nearly 14% last week due to supply chain disruptions from the Iran war, reflecting strong investor demand for energy stocks, which may face short-term pullback risks.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 676.870
Low
655.15
Averages
824.71
High
1117
Current: 676.870
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- AI Investment Strategy: Meta has invested billions in artificial intelligence, establishing data centers and a superintelligence lab to enhance ad performance and attract more advertising spend, thereby boosting profitability in its core business.
- New Product Launch: This month, Meta unveiled its first large AI model, Muse Spark, which is expected to offer paid access to third-party developers, further diversifying revenue streams and enhancing market competitiveness.
- Historical Performance Analysis: Historical data shows a close correlation between Meta's return on invested capital (ROIC) and stock performance, indicating that whenever ROIC rises, the stock price tends to follow suit, reflecting the company's prudent investment decisions.
- Market Outlook: Despite current market volatility, Meta's AI investments are seen as a key growth driver for the future, with analysts suggesting that now is an attractive time to buy Meta stock.
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- Apple's Positive Outlook: Morgan Stanley reiterated Apple as overweight, expecting a modest 1-2% upside in revenue and EPS in the upcoming earnings report, despite supply constraints, indicating the company's resilience in the market.
- Amazon Price Target Increase: Bank of America raised Amazon's price target from $275 to $298, believing that with strong assets and customer focus, Amazon is well-positioned to capitalize on the global growth of eCommerce and enterprise demand for AI capabilities, showcasing robust growth potential.
- Microsoft's Favorable Outlook: Deutsche Bank reiterated Microsoft as a buy, expecting Azure's performance and guidance to be focal points in the upcoming earnings report, indicating that the company's broad progress in AI initiatives will drive future growth.
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- Potential Collaboration: The potential deal involves a memory processing unit to complement Google's tensor processing unit (TPU) and a new TPU designed specifically for running AI models, indicating Google's intent to reduce reliance on external chip suppliers and strengthen its in-house chip development capabilities.
- Rising Market Demand: As businesses increasingly adopt AI tools, both Marvell and its competitor Broadcom are assisting clients in designing specialized processors to meet the growing demand for AI workloads in advanced data centers, a trend that will further drive Marvell's business growth.
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- New Investment in Meta: Ackman acquired 2.7 million shares of Meta Platforms worth $1.8 billion in Q4, making up 11.4% of his portfolio, as he believes Meta's stock price underestimates its long-term AI potential and that its advertising business remains a strong cash generator.
- AI Market Outlook: Ackman is optimistic about the growth potential of Amazon's AWS AI infrastructure, predicting substantial returns from its capital expenditures, while Meta effectively monetizes content on its social media platforms using AI, attracting 3.58 billion daily active users and showcasing strong advertising appeal.
See More
Bill Ackman Increases Stake in Amazon and Meta
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- New Investment in Meta: Ackman initiated a new $1.8 billion position in Meta Platforms in Q4, now comprising 11.4% of his portfolio, believing that Meta's stock undervalues its long-term AI potential, particularly in advertising.
- Concentration in AI Investments: With 39% of Ackman's portfolio focused on artificial intelligence, he emphasizes the importance of AI technology's future, particularly regarding AWS's infrastructure investments and Meta's content monetization capabilities.
- Optimistic Market Outlook: Ackman's investment strategy indicates his belief in the growth potential of both Amazon and Meta, especially in the ongoing expansion of AI and advertising businesses, which are expected to yield substantial returns.
See More
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- Partnership Extension: Broadcom and Meta have extended their multi-year partnership through 2029 to co-develop custom AI silicon, which is expected to significantly enhance Meta's data center infrastructure efficiency, thereby strengthening its competitive edge in social media and generative AI.
- Technological Innovation: Under the agreement, Meta will utilize Broadcom's XPU platform to build the industry's first 2-nanometer AI compute accelerators aimed at achieving its 'personal superintelligence' goals, which not only reduces reliance on expensive third-party GPUs but also optimizes hardware performance for specific workloads.
- Market Impact: This collaboration provides Broadcom with a multi-billion-dollar long-term revenue commitment and signifies a shift in the AI industry from the experimental phase to the infrastructure phase, likely attracting more investors to tech-focused ETFs and mitigating the risks associated with investing in individual stocks.
- ETF Investment Opportunities: Investors can gain exposure to the synergy between Broadcom and Meta through tech ETFs like IGM, QQQ, and AIQ, which have seen year-to-date gains of 5.8% and 4.4% respectively, indicating strong market performance and potential for future growth.
See More
Meta Seeks Growth Through AI Investments
- AI Investment Strategy: Meta has invested billions in artificial intelligence, establishing data centers and a superintelligence lab to enhance ad performance and attract more advertising spend, thereby boosting profitability in its core business.
- New Product Launch: This month, Meta unveiled its first large AI model, Muse Spark, which is expected to offer paid access to third-party developers, further diversifying revenue streams and enhancing market competitiveness.
- Historical Performance Analysis: Historical data shows a close correlation between Meta's return on invested capital (ROIC) and stock performance, indicating that whenever ROIC rises, the stock price tends to follow suit, reflecting the company's prudent investment decisions.
- Market Outlook: Despite current market volatility, Meta's AI investments are seen as a key growth driver for the future, with analysts suggesting that now is an attractive time to buy Meta stock.
See More
Major Wall Street Rating Updates on Monday
- Tesla Rating Adjustment: Jefferies raised Tesla's price target from $300 to $350, anticipating Q1 results will show a widening gap between vision and execution, and concerns about funding may arise without a convincing robotaxi announcement, potentially leading to merger considerations with SpaceX.
- Apple's Positive Outlook: Morgan Stanley reiterated Apple as overweight, expecting a modest 1-2% upside in revenue and EPS in the upcoming earnings report, despite supply constraints, indicating the company's resilience in the market.
- Amazon Price Target Increase: Bank of America raised Amazon's price target from $275 to $298, believing that with strong assets and customer focus, Amazon is well-positioned to capitalize on the global growth of eCommerce and enterprise demand for AI capabilities, showcasing robust growth potential.
- Microsoft's Favorable Outlook: Deutsche Bank reiterated Microsoft as a buy, expecting Azure's performance and guidance to be focal points in the upcoming earnings report, indicating that the company's broad progress in AI initiatives will drive future growth.
See More
Marvell Technology Shares Surge 7% on Google Chip Development Talks
- Stock Surge: Marvell Technology (MRVL.O) shares jumped 7% in premarket trading on Monday, primarily due to reports of Google negotiating to develop two new chips aimed at running AI models more efficiently, which is expected to significantly enhance Marvell's market value and investor confidence.
- Potential Collaboration: The potential deal involves a memory processing unit to complement Google's tensor processing unit (TPU) and a new TPU designed specifically for running AI models, indicating Google's intent to reduce reliance on external chip suppliers and strengthen its in-house chip development capabilities.
- Rising Market Demand: As businesses increasingly adopt AI tools, both Marvell and its competitor Broadcom are assisting clients in designing specialized processors to meet the growing demand for AI workloads in advanced data centers, a trend that will further drive Marvell's business growth.
- Analyst Ratings: According to data from LSEG, the average stock rating among 44 analysts covering Marvell is
See More
Billionaire Ackman Bets Big on Amazon and Meta
- Concentrated Investment Strategy: Ackman's Pershing Square Capital Management currently holds only 12 stocks, with 39% of its investments focused on artificial intelligence, reflecting strong confidence in the AI sector's future market potential.
- Amazon Position Increase: In Q4 2025, Ackman increased his stake in Amazon by 65%, further solidifying its leadership in e-commerce and cloud services, with expectations that its advertising revenue will significantly boost profitability.
- New Investment in Meta: Ackman acquired 2.7 million shares of Meta Platforms worth $1.8 billion in Q4, making up 11.4% of his portfolio, as he believes Meta's stock price underestimates its long-term AI potential and that its advertising business remains a strong cash generator.
- AI Market Outlook: Ackman is optimistic about the growth potential of Amazon's AWS AI infrastructure, predicting substantial returns from its capital expenditures, while Meta effectively monetizes content on its social media platforms using AI, attracting 3.58 billion daily active users and showcasing strong advertising appeal.
See More
Bill Ackman Increases Stake in Amazon and Meta
- Increased Amazon Stake: Bill Ackman raised his stake in Amazon by 65% in Q4 2025, reflecting strong confidence in the company's dominance in e-commerce and cloud services, with expectations for significant profitability growth.
- New Investment in Meta: Ackman initiated a new $1.8 billion position in Meta Platforms in Q4, now comprising 11.4% of his portfolio, believing that Meta's stock undervalues its long-term AI potential, particularly in advertising.
- Concentration in AI Investments: With 39% of Ackman's portfolio focused on artificial intelligence, he emphasizes the importance of AI technology's future, particularly regarding AWS's infrastructure investments and Meta's content monetization capabilities.
- Optimistic Market Outlook: Ackman's investment strategy indicates his belief in the growth potential of both Amazon and Meta, especially in the ongoing expansion of AI and advertising businesses, which are expected to yield substantial returns.
See More
Broadcom and Meta Deepen Partnership to Advance AI Chip Development
- Partnership Extension: Broadcom and Meta have extended their multi-year partnership through 2029 to co-develop custom AI silicon, which is expected to significantly enhance Meta's data center infrastructure efficiency, thereby strengthening its competitive edge in social media and generative AI.
- Technological Innovation: Under the agreement, Meta will utilize Broadcom's XPU platform to build the industry's first 2-nanometer AI compute accelerators aimed at achieving its 'personal superintelligence' goals, which not only reduces reliance on expensive third-party GPUs but also optimizes hardware performance for specific workloads.
- Market Impact: This collaboration provides Broadcom with a multi-billion-dollar long-term revenue commitment and signifies a shift in the AI industry from the experimental phase to the infrastructure phase, likely attracting more investors to tech-focused ETFs and mitigating the risks associated with investing in individual stocks.
- ETF Investment Opportunities: Investors can gain exposure to the synergy between Broadcom and Meta through tech ETFs like IGM, QQQ, and AIQ, which have seen year-to-date gains of 5.8% and 4.4% respectively, indicating strong market performance and potential for future growth.
See More
