Quarterly revenue record and fresh talent incentives lift Meta stock despite bearish momentum

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Meta gains 1.17% today to $599.54

Highlights

Meta will grant stock options for top executives tied to share price goals to retain AI talent during rising competition and investment.
Quarterly advertising revenue hit a record $59.9 billion, but Reality Labs' losses reached $6.0 billion, with $19.2 billion projected for 2025.
META trades below key moving averages with negative momentum, expected to move sideways near $600 and risk downside if $590 support breaks.

Executive stock options and legal challenges amid record ad revenue

Meta will introduce stock options for top executives for the first time since its 2012 IPO, with payouts tied to significant share price milestones, as part of efforts to retain key talent amid increased investment and competition in artificial intelligence. The company reported $59.9 billion in advertising revenue for the most recent quarter, marking its largest quarterly figure, while the Reality Labs division posted a $6.0 billion operating loss, adding to a $19.2 billion loss for 2025. Additionally, a New Mexico jury found Meta liable for violating consumer protection laws related to child safety, ordering a $375 million payment, and the company may face further obligations pending judicial review.

Intraday rebound diverges from broad negative momentum signals

Momentum remains negative as both MACD and ADX on D1 and W1 point to a weak or declining trend. RSI (34.53), Stoch RSI (10.83), and CCI (–142.22) all indicate the market is oversold, while BBP’s negative reading (–19.17) confirms clear intraday seller dominance. Today’s session is showing a modest gain of $6.94 or 1.17% after opening with a moderate upside gap from the previous close and trading currently just below the day’s high ($602.80), suggesting moderate volatility and mild strength toward session highs. Despite the daily uptick, most momentum signals contradict this move, reflecting a divergence between modest intraday recovery and persistent broader weakness.

Downside risk heightened as indicators favor continuation of weakness

For the coming week, the expected trading range is adjusted to $590.00 — $610.00 to reflect recent volatility and proximity to the current price. The probability of a price increase is very low (less than 20%) based on consistently bearish or neutral readings across key weekly indicators, making further declines more likely. The baseline scenario is sideways movement near $600. A bullish case would require breaking above $630 — $635 to overcome immediate resistance, while a bearish scenario would see the price falling below support near $590, risking further downside if selling persists.

Anton Kharitonov, analyst at Traders Union, sees ongoing weakness in META as the price remains trapped under all major moving averages and momentum signals stay strongly bearish. He believes fundamental news on executive compensation and legal liabilities only adds to downside risks rather than reversing sentiment. The analyst notes sellers have clear control, with only mild volatility providing short-term relief but no change to the overall negative setup. "As long as META trades below $630, the bias stays defensive and sellers remain in control — I see no reason to look for long opportunities here."

Earlier, analysts noted that Meta was experiencing sustained bearish momentum and elevated downside risks as it shifted focus toward artificial intelligence initiatives amid ongoing operational headwinds. The latest developments—including executive compensation changes, record ad revenue, continued investment in AI, and new legal liabilities—introduce fresh variables to the risk profile, underscoring the importance of monitoring support near $590 and price action around the $630–$635 resistance zone for potential shifts in trend.

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.