-3.8% for Meta stock as buyers hesitate near $629.75 resistance

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Meta slides 3.8% after cloud AI move

Highlights

Meta Platforms is entering the cloud computing market by commercializing its excess AI infrastructure, intensifying competition with established cloud providers.
This strategic move aims to diversify Meta’s revenue beyond digital advertising and convert heavy AI capital expenditure into potential growth opportunities.
Technicals show mixed signals with short-term upside momentum, but price is consolidating under long-term resistance; expected range is $552.33 to $629.75.

AI-driven cloud launch aims to offset ad reliance amid selling pressure

On July 1, 2026, Meta Platforms announced plans to launch a new cloud computing business that will offer access to its excess AI computing power and models, positioning itself directly against established cloud providers, according to Bloomberg. By leveraging and monetizing its substantial artificial intelligence infrastructure, the company aims to diversify its revenue base beyond digital advertising, as reported by CNBC. This strategic move could also help transform the heavy capital expenditure on AI into new avenues for future growth, TechCrunch noted, though price action has remained under broader selling pressure.

Mixed momentum as short-term support holds but long-term signals diverge

Technically, META is trading above both the 20-period and 50-period moving averages on the hourly chart, with levels situated at $582.72 and $566.98, respectively, while remaining below the 200-period moving average at $647.41. The Ichimoku Kijun provides immediate support at $588.63. Momentum indicators are mixed: the Moving Average Convergence Divergence (MACD) and Average Directional Index (ADX) both present buy signals, suggesting active intraday upside momentum, yet the Relative Strength Index (RSI) shows a mild bullish reading at 56.23. The Commodity Channel Index (CCI) and Stochastic RSI are neutral, and Bull/Bear Power is overbought, implying buyer dominance for the session, while the Awesome Oscillator is neutral and does not indicate a clear directional bias.

Sideways consolidation expected as breakout risks shape near-term moves

In the short term, META is expected to consolidate within a volatility band between $552.33 and $629.75. The likelihood of an upward move stands at 62%, while the probability of a downward move is pegged at 38%. The baseline expectation is for sideways movement, but a sustained break above $629.75 could initiate a bullish phase, whereas renewed selling pressure below $552.33 may trigger a retest of lower support levels.

Viktoras Karapetjanc, expert at Traders Union, sees Meta’s new cloud computing initiative as a strong fundamental shift. He believes monetizing AI infrastructure can drive long-term revenue diversification and support sustained growth. Technical signals are mixed, but the strategic move into enterprise markets gives reason for optimism. The consolidation zone between $552.33 and $629.75 remains the key near-term range. "If Meta manages to execute on its AI cloud strategy, the stock could unlock real value well beyond traditional advertising," he says.

Previously, analysts noted that Meta's efforts to monetize its artificial intelligence infrastructure could provide a new growth avenue beyond its traditional digital advertising model. With current price action showing indecision despite positive momentum signals, traders should closely watch for a breakout above $629.75 or a breakdown below $552.33 as potential catalysts for a decisive move.

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.