Meta Platforms (NASDAQ:META) has stayed on a winning streak thus far in 2024, but in recent weeks, Meta Platforms stock has hit a wall. Investors are awaiting major developments before making their decision. The wait is almost over for Meta, which will release quarterly results and guidance updates on April 24 after the market closes.

META surged sharply after the social media giant’s last quarterly earnings release in February, but it’s very possible that the market’s reaction this time is far different. So, is it time to bail before a postearnings plunge? Not necessarily, as we’ll explain below.

Meta Platforms Stock Earnings Preview

Take a look at recent Meta Platforms headwinds, and you may jump to the conclusion that the market is gearing up to “buy the rumor, buy more on the news” with the company’s upcoming earnings release.

Meta Platform stock has continued to garner high marks from Wall Street’s sell side. So far this month, analysts from four firms have reiterated “buy” or equivalent to “buy” ratings on shares, according to Finviz.

Sell-siders have also been unanimous in raising their quarterly earnings forecasts over the past 90 days.

The company has also continued to provide promising updates on its AI endeavors. For instance, Meta’s unveiling of its latest in-house artificial intelligence accelerator chip. Yet while all of this news strongly suggests that META will soar on “beat and raise” results and further AI-related updates next week, this is far from guaranteed.

There’s still a chance that investors, rather than “buy more on the news,” decide to use the earnings release as an excuse to sell, after the stock’s latest stunning run-up in price. This hold especially true, as macro uncertainties reemerge, calling into question whether top tech stocks can sustain their current valuations.

The Long-Term Bull Case is What Still Matters Most

Besides the emergence of the AI megatrend, another factor driving megacap tech stock higher has been the prospect of lower interest rates. However, based on the latest statements from Federal Reserve Chairman Jerome Powell, there’s now even greater uncertainty over whether rates will start to fall this year.

Yes, some experts, like Truist co-CIO Keith Lerner, argue that “Mag 7″ stocks can still thrive in a “higher for longer” scenario. However, while this could ultimately prove true, at the onset that may not be the case. Further indication that high interest rates persist through 2025 could temporarily call into question the high valuations of these top tech titans.

Hence, Meta Platforms stock could encounter some turbulence pretty soon, on valuation and macro concerns. Nevertheless, don’t view this as a reason to make a move to the sidelines, until these storms pass. Market-timing is easier said than done, and a largely futile pursuit.

Not only that, the extent of any short-term turbulence with META may be far less severe than you think, given the stock’s reasonable valuation (25 times forward earnings) relative to growth. Most of all, the long-term bull case, which is what matters most, has not weakened one iota.

Bottom Line: Hang On Tight, Irrespective of Earnings

Previously, we laid out META’s clear path to prices topping $750 per share. While for now macro worries could limit multiple expansion potential, once this headwind passes it may be a different story.

As Meta continues to develop and monetize its AI technology, the market could become more willing to value the stock in line with other “Mag 7″ names with high AI exposure, which trade for 30-40 times forward earnings.

Even after 2023’s “year of efficiency,” the company may still have room to slash billions in annual operating expenses. Largely, by further scaling back its metaverse efforts.

Hence, don’t get carried away with near-term news when it comes to META.

Irrespective of whether shares surge or sink after earnings, hang on tight to any existing positions. If you’ve yet to buy Meta Platforms stock, feel free to do so.

Meta Platforms stock earns an A rating in Portfolio Grader.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.