Meta stock rises around 2.5% as Muse Image AI launches for Instagram and WhatsApp

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Meta jumps 2.54% after Muse AI launch

Highlights

Meta advances AI strategy by launching its Muse Image model for Instagram and WhatsApp and pursuing a $6.5 billion AI chip partnership with Samsung.
The company aims to open new revenue streams through Meta Compute, monetizing surplus data center capacity for third-party developers, while continuing to optimize operations by cutting 21,000 jobs.
Technicals indicate strong short-term bullish momentum with overbought signals; price expected to consolidate between $594.19 and $636.85 over the next few days.

AI expansion and cost cuts reshape Meta’s business mix

Meta has launched its Muse Image AI model, with plans for integration into Instagram and WhatsApp, a move that expands its AI offering and enhances user engagement across its main platforms, according to Tradingkey. The company is also seeking to monetize excess data center capacity through its Meta Compute initiative, opening new revenue streams by enabling third-party developer access to infrastructure. Alongside these technology-focused efforts, Meta remains active in operational restructuring, having recently eliminated about 21,000 jobs to optimize its expense structure, as reported by Thestreet. Additionally, Meta is in discussions with Samsung for a $6.5 billion deal to co-develop next-generation MTIA AI chips, a step that could strengthen its position in AI infrastructure, as reported by Barchart.

Bullish momentum meets resistance amid mixed technical indicators

On the hourly chart, META is trading above the MA-20 at $598.98 and MA-50 at $584.38, while remaining below the long-term MA-200 set at $644. Immediate support aligns with the Ichimoku Kijun at $602.9. The Moving Average Convergence Divergence (MACD) and Average Directional Index (ADX) both signal positive momentum, while the Relative Strength Index (RSI) stands at 64.22, reflecting a bullish bias near overbought territory. The Commodity Channel Index (CCI) and Bull/Bear Power both point to overbought conditions and ongoing buyer dominance, whereas both the Stochastic RSI and Awesome Oscillator are neutral. Current technicals show divergent signals across momentum and oscillator indicators, highlighting high volatility and the need for caution in follow-through trades.

High breakout odds as volatility frames rangebound outlook

Over the next 2 to 3 sessions, META is expected to trade within a range of $594.19 to $636.85. The probability of an upward breakout is very high, with a down move holding a very low likelihood. The baseline case calls for price consolidation within the stated volatility band. A push above $636.85 could trigger further gains into a fresh short-term rally, while a breach of support at $594.19 would open the door to downside scenarios.

Viktoras Karapetjanc, expert at Traders Union, sees Meta’s aggressive AI expansion and cloud monetization strategy as strong drivers for long-term growth. He notes that operational cost cuts and new infrastructure partnerships reinforce the company’s macro and fundamental positioning. While technicals show mixed signals and regulatory risks persist, the analyst believes overall sentiment and innovation momentum favor the upside. "Meta’s transformation into an AI-driven platform with new revenue streams makes me constructive, and I expect the bullish trend to continue as long as support at $594.19 is respected."

Previously, it was reported that major U.S. tech firms like Meta are increasing their presence and strategic investments in data center infrastructure, reflecting the sector’s rapid evolution and cross-industry partnerships. Meta’s latest initiatives—including AI expansion, operational streamlining, and efforts to monetize excess capacity—add a new dimension to the company’s positioning, with traders advised to monitor the upper boundary near $636.85 for potential breakout-driven upside.

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

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