Flat trading for Meta stock as full-year capital expenditure raised to $125

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Meta slides 0.80% as AI bets grow

Highlights

Meta secured $13 billion in debt financing for a new AI data center, significantly increasing leverage and infrastructure investment.
Q1 2026 adjusted EPS of $7.31 exceeded forecasts, but headcount will be cut by 10% amid ongoing AI-related restructuring.
Meta trades below major moving averages, with oscillators oversold and price likely to remain range-bound between $595 and $615 amid persistent bearish sentiment.

Increased leverage and job cuts as AI investment accelerates

On May 4, 2026, Meta secured a $13 billion financing package from Morgan Stanley and JPMorgan Chase to fund the development of a new AI data center in El Paso, Texas, with most capital raised through debt, expanding future leverage and committing significant funds toward AI infrastructure. The company also reported Q1 2026 diluted EPS of $10.44, which included an $8.03 billion one-time tax benefit, and adjusted EPS of $7.31 that surpassed consensus forecasts. In addition, Meta raised its full-year 2026 capital expenditure guidance to $125–$145 billion and announced a 10% workforce reduction involving approximately 8,000 jobs, indicating ongoing restructuring and increased investment focus in AI, though price action has remained under broader selling pressure.

All averages breached as oversold momentum counters buy signals

SMA-20 is at $648.91, SMA-50 at $629.39, and SMA-200 at $677.83, with Meta currently trading below all three levels. The Ichimoku Kijun on the daily timeframe is positioned at $605.99, providing immediate resistance just above the current price. Among momentum indicators, MACD on D1 issues a Strong Buy signal, while ADX reads 15.57, reflecting a weak and trendless environment. Oversold readings are present in RSI (41.04), CCI (-93.24), and Stoch RSI (0.97), and BBP is deeply negative at -28.22, confirming ongoing seller dominance. The Awesome Oscillator remains neutral, offering little confirmation to prevailing trends.

Consolidation risk persists as breakout odds remain limited

For the next five trading days, the expected volatility band is in the $595–$615 range. The likelihood of an upside breakout remains low (below 20%), favoring the probability of further decline. The base case anticipates consolidation between $595 and $615. A daily close above the Kijun level at $606 could open the way for a move toward $615, while a breakdown below $595 may accelerate losses if selling intensifies.

Anton Kharitonov, expert at Traders Union, sees persistent downside momentum in Meta Platforms as the stock continues to trade below its key moving averages and technical resistance at $605.99. He notes that the heavy debt financing and rising capital expenditures for AI, along with substantial restructuring, add risk and uncertainty for investors. The overall sentiment remains cautious despite a strong earnings beat, as price is pressured by both technicals and structural challenges. "Unless price reclaims the Kijun level at $606, I remain defensive and expect consolidation or further weakness."

Earlier, analysts noted that Meta faced continued downside pressure amid heavy capital spending, restructuring efforts, and increased external scrutiny. With Meta now leveraging substantial new financing for AI infrastructure while maintaining oversold technical readings, traders should monitor for a potential momentum shift if the price holds above the Ichimoku Kijun resistance at $606.

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.