Meta stock price forecast: $553.2 support as META trades flat

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Meta slips 0.19% amid AI and layoff news

Highlights

Meta awarded six senior executives stock options potentially worth up to $921 million each, signaling long-term management incentives and confidence post-IPO.
Despite record Q1 revenue of $56.3 billion and net income of $26.8 billion, Meta faces regulatory headwinds, major AI investments, and ongoing layoffs for cost control.
META shares trade below key moving averages with bearish momentum, expected to consolidate in the $553.2–$570.8 range and high risk of further downside.

Strategic grants and regulatory actions weigh on price sentiment

Meta granted six senior executives stock option packages with a potential value of up to $921 million each, marking the company's first such grant since its 2012 IPO and incentivizing long-term management performance. In April, Meta reported record first-quarter revenue of $56.3 billion and net income of $26.8 billion, which demonstrated fundamental strength, while about 8,000 employees were notified of layoffs as part of ongoing cost management. Additional factors included a $145 billion capital investment in artificial intelligence initiatives, as reported by Moneywise, the suspension of an employee data tracking program used for AI training amid privacy concerns according to Econotimes, and an EU antitrust order reported by Finance Yahoo requiring Meta to provide WhatsApp access to rival AI chatbots during an investigation. While these developments indicate ongoing strategic shifts and regulatory pressure, price action has remained under broader selling pressure.

Bearish momentum signaled as support holds below resistance

Technical analysis shows META is currently below the MA-20 ($566.91) and MA-50 ($577.3) on the one-hour chart, as well as beneath the long-term MA-200 ($653.1, daily). The Ichimoku Kijun is positioned at $570.3 and acts as immediate resistance, while support is seen near $553.2 and resistance at $570.8. Momentum indicators reflect a bearish profile: MACD registers Strong Sell, ADX is Neutral, and RSI sits at 41.08 (Sell), suggesting weak momentum but no strong oversold signals. Both Stoch RSI and CCI are Neutral, while Bull/Bear Power is Overbought and AO is Neutral, highlighting a divergence between oscillators and trend momentum.

Downside risk remains high amid consolidation and weak breakout odds

In the coming sessions, META is expected to consolidate within the $553.2 to $570.8 range, reflecting its recent low-volatility environment. The likelihood of a bullish breakout above $570.3 resistance is very low, with downside risk remaining elevated, especially if support at $553.2 fails. The base case scenario is a continuation of sideways trading in this corridor; a clear break below support could accelerate declines, while a reversal higher would require confirmation above key resistance.

Viktoras Karapetjanc, expert at Traders Union, sees Meta’s fundamentals as robust, supported by strong revenue growth and significant AI investment. He notes that leadership stock options and ongoing cost-saving measures align management interests with shareholders. However, regulatory pressures and technical weakness suggest caution in the short term. Karapetjanc believes momentum could recover with a decisive move above $570.8 resistance. "I remain constructive on Meta’s long-term prospects, but patience is needed until technical confirmation appears."

Previously it was reported that Meta’s technical outlook remained bearish despite strategic investments and leadership changes in its India operations. The current environment reinforces this cautious stance, with traders advised to monitor support near $553.2 as a sustained break could trigger further selling momentum.

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.