-1.85% for Meta stock as technical signals point to further downside

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Meta drops 1.85% to $592.92 today

Highlights

Meta committed $27 billion to artificial intelligence infrastructure, with future growth tied to timely delivery of next-generation AI chips from key suppliers.
Reality Labs posted a $6.0 billion operating loss for the quarter, projecting full-year 2025 segment losses to reach $19.2 billion.
META stock remains in a pronounced downtrend, trading below major moving averages with sellers dominating and next-week ranges projected at $580–$610.

AI infrastructure investment and chip supply risks influence Meta’s outlook

Meta recently signed a $27 billion capacity deal to invest in artificial intelligence infrastructure. In the latest quarterly report, its Reality Labs segment recorded an operating loss of $6.0 billion for the quarter, bringing the full-year 2025 operating loss for that segment to $19.2 billion. The company’s future revenue growth and capex plans are contingent in part on the timely delivery of next-generation AI chips from suppliers such as Nvidia and TSMC, with any supplier delays having the potential to impact Meta’s AI initiatives.

Oversold signals and weak momentum underpin META’s continued downtrend

The current price of META at $592.92 is trading well below the SMA-20 ($637.88), SMA-50 ($649.18), and SMA-200 ($690.20), signaling continued pressure from sellers across short-, medium-, and long-term horizons. The Ichimoku Kijun level at $630.16 stands above the last traded price, now acting as immediate resistance. Momentum indicators remain weak, as both MACD and ADX point to soft, selling-biased trends with low directional strength on the daily chart. Oversold warnings are triggered by the RSI (37.59), Stoch RSI (23.05 with strong buy indication), and CCI (-134.39), but BBP at -15.11 confirms sellers dominate intraday action. AO is negative and supports the prevailing downtrend.

Bearish extension likely with low odds for upward reversal

For the next week, the expected trading range is adjusted to $580–$610 to fit typical volatility around current prices. The probability of an upward move is very low (less than 20%), making further downside more likely. In the baseline scenario, META is likely to remain rangebound between recent lows and the $630 immediate resistance. If bullish sentiment emerges and the price reclaims $630, further recovery could materialize; conversely, a break below $580 will reinforce the bearish trend and may prompt a test of lower supports.

Viktoras Karapetjanc, expert at Traders Union, sees Meta’s strong AI investment as a positive long-term story, but he notes that heavy Reality Labs losses and reliance on timely AI chip deliveries weigh on near-term sentiment. With META trading well below its main moving averages and weak momentum, he believes sellers remain in control for now. Macro and technical headwinds limit immediate upside, though structural AI trends are supportive at the core. "If bulls can reclaim $630, the outlook turns brighter — for now, patience and vigilance are key."

Earlier, analysts noted that Meta was experiencing persistent downward pressure amid weak momentum readings and shifting strategic priorities toward AI and away from the metaverse. The current environment, shaped by a major AI infrastructure deal and deepening Reality Labs losses, signals that continued vigilance around the $580 downside level is warranted as the risk of further declines mounts if support fails.

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.