Meta and Microsoft buy levels for investors looking to start positions in this lofty market
Key Takeaways
We think waiting for slight pullbacks in each before buying would be prudent.
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August 15, 2025
05:21 PM
CNBC
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This week's question: I would to start a position in Meta and Microsoft, but am unsure how, when the stocks are up this high
Is it too late? If I have to wait for a pullback, how much of a pullback should I wait for? – Ann S
It's not too late to start positions in Meta Platforms and Microsoft because, from a fundamental perspective, we think both stocks are solid long-term investments
Nonetheless, as indicated by our 2 ratings on both names, we do think waiting for a slight pullback before buying would be prudent
Looking at their charts below for buy levels from a nical standpoint, we tend to start our analysis by looking at the 50-day and 200-day moving average – represented by the green and maroon lines, respectively
From there, we look for long-term support and resistance levels – represented by the horizontal black lines
But, more than the exact prices, we want to show investors how to spot the moving averages and long-term trends
At the , we are first and foremost fundamental investors, but we do look to nical analysis as another tool to help out
Meta buy levels: $738, $722, $638 Starting with Meta Platforms, the first level of interest would be around $738 per , a level that ved to be resistance twice over the past year before the stock broke above it on the back of a strong earnings report
A move to $738 would represent a pullback of roughly 6% from current levels around $788 and put s at just under a price-to-earnings valuation of 25 times 2026 earnings estimates
The next level down would be the 50-day moving day at around $722
Given that we are above that average, we would look to it for support per the polarity principle – past resistance, once broken, typically becomes support
A move to $722 would be a pullback of just under 8%
The 200-day moving average at $638 is well below the 50-day, typical of a stock that has been on a run Meta
That would be a pretty significant decline of 19% and put s at just over 21 times 2026 estimates
The $638 level would only come into play if the 50-day were breached
Microsoft buy levels: $502, $455, $438 Jumping to Microsoft, the 50-day is currently at around $502, 4% below current levels around $524 and just over 6% off the stock's all-time closing high
That's a decent-sized pullback to start a position
From there, however, we don't see much in terms of support until we get to around $455, a level that previously served as resistance earlier this year before it was breached in late May
A move to this level would put s at under 30 times fiscal year 2026 earnings estimates, the midpoint of the P/E range seen over the past five years
From there, the 200-day moving average is around $438, a roughly 16% decline from current levels
Bottom line While the 200-day moving averages are pretty far down for both Microsoft and Meta, those levels are not out of the question if there were a broad-based market pullback
The 200-day moving average is usually a solid level to hold your nose and do some buying, assuming that there's no change to your longer-term investment thesis
That said, we don't foresee a major correction as the Federal Reserve is expected to cut interest rates next month and possibly two more times before year-end
The Fed cut rates three times at the end of 2024 but has kept them steady ever since
We also don't think that trying to play a correction is in the best interest of those looking to make money
In the words of famed investor Peter Lynch, "Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in the corrections themselves." (See here for a full list of the stocks INJim Cramer's Charitable Trust.) As a r to the CNBC with Jim Cramer, you will receive a trade alert before Jim makes a trade
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