Strategic shift to AI wearables — Meta shows 1.82% strength in latest price forecast

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Meta rises 1.82% today to $673.55

Highlights

Meta is reducing Reality Labs' metaverse-related spending by up to 30% and reallocating resources toward AI-powered glasses and wearable technology.
This strategic shift may impact jobs in underperforming AR/VR units, though Meta has not confirmed broad layoffs at this time.
Meta declared a quarterly dividend of $0.525 per share for stockholders of record as of December 15th.

AI shift as metaverse investment cut and dividend announced

Meta has announced a significant strategic reallocation by reducing Reality Labs' metaverse-related spending by up to 30% and shifting investment focus toward AI-powered glasses and wearable technology. This change could affect employment in underperforming AR/VR units, although broad layoffs have not been confirmed. The company is also pursuing growth in AI-driven augmented reality devices and has declared a quarterly dividend of $0.525 per share for stockholders of record as of December 15th.

Mixed momentum as uptrend meets resistance and overbought signals

On the technical front, Meta maintains a strong uptrend, having closed above both the MA-20 and MA-200, with ongoing dynamic support near the Ichimoku Kijun level at $631.11. However, the MA-50 at $675.39 acts as immediate resistance, and volatility remains elevated. Momentum indicators are mixed: ADX suggests a trend is in play, but the D1 MACD points to underlying weakness. The RSI is constructive at 59.9, though both Stoch RSI and CCI indicate overbought conditions, and Bull/Bear Power shows buyers remain in control intraday.

Sideways consolidation likely as volatility band holds

Over the next five sessions, META is expected to fluctuate within a $649 – $675 volatility band relative to current levels. The probability of further upside is moderate, with a roughly equal chance of a short-term pullback. The base case is for the price to consolidate sideways between $649 and $675. A decisive break above $675 could trigger a bullish extension, while a decline below $649 would signal a short-term corrective move.

Viktoras Karapetjanc, senior analyst at Traders Union, notes Meta’s strong price action and positive reaction to its AI-focused strategic shift. He sees robust technical support as a foundation for continued confidence, even as the stock digests recent gains. Karapetjanc believes the company’s pivot away from the metaverse toward AI wearables is fueling optimism. “With healthy fundamentals and improving sentiment, I expect META to consolidate above $649 and challenge the $675 resistance in the near term.”

Previously it was reported that Meta shares regained momentum from oversold conditions, climbing toward heavy resistance clustered near key moving averages as technical indicators like the RSI turned neutral-bullish, suggesting the potential for further upside if resistance is cleared. A decisive move above the 200-day EMA would signal a shift in sentiment and open the path to upside toward $705-$715 and potentially $720, while failure to break through could leave the stock vulnerable to renewed volatility at support levels.

Source of Data: META Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.