Can Meta stock hold $640.47 support after layoffs tied to AI tool dispute?

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Meta drops 3.23% to $643 today

Highlights

Meta is exploring a multibillion dollar AI compute lease with Anthropic to monetize surplus infrastructure and expand its AI cloud presence.
Recent executive hires and partnerships underscore Meta's aggressive investment in AI amid ongoing restructuring and judicial approval for AI-related layoffs.
META faces sustained selling pressure, trades below short- and medium-term trend levels, with a projected range of $616.35 to $669.85 and a bearish technical setup.

AI expansion and restructuring drive strategic shifts despite market pressure

Meta Platforms has entered into discussions with Anthropic about a potential multibillion dollar AI computing capacity lease, a move leveraging its expanding AI infrastructure and presenting a path to generate new revenue streams from excess capacity, according to Storyboard18. The company's recently reported hiring of former AWS executive Dave Brown is aimed at strengthening its push into AI cloud offerings, while its partnership with Nvidia in the AI Materials Foundry alliance, as cited by Tradingview, reflects broader ambitions to shape future semiconductor advances. Additionally, a US judge has allowed Meta to proceed with layoffs involving employees who had disputed the use of AI-based evaluation tools, clearing the way for ongoing restructuring efforts. These corporate actions highlight active repositioning and strategic investment in AI, though price action has remained under broader selling pressure.

Negative momentum reinforces resistance tests amid high volatility

On the technical front, META is currently positioned below the MA-20 and MA-50 on the hourly chart, while holding slightly above the long-term MA-200 daily support at $640.47. Immediate resistance stems from the Ichimoku Kijun level at $656.04. Momentum remains negative, as MACD and ADX register Sell signals; both RSI at 41.61 and CCI signal selling pressure without indicating an oversold state, and Stoch RSI is Neutral. Bull/Bear Power points to seller dominance intraday, with the Awesome Oscillator reading as Neutral and not reinforcing the prevailing trend. The session witnessed high volatility and a pronounced price gap compared to the previous close, contributing to a sense of market uncertainty.

Downside risk elevated if support fails during volatile trading

Looking ahead, META is likely to trade within a broad corridor between $616.35 and $669.85 over the next few sessions, reflecting ongoing volatility. The probability of an upward move is estimated at 29%, versus a 71% chance of further downside within this range. Should the price break and hold above the $656.04 resistance, a bullish scenario could develop. Conversely, sustained price action below the $640.47 support would increase the risk of additional declines.

Anton Kharitonov, analyst at Traders Union, sees Meta’s recent corporate activity as strategically significant but insufficient to counter current market pressure. He notes strong initiative on AI monetization and operational restructuring but highlights that technical momentum remains negative, with price vulnerable below key moving averages. Kharitonov believes the $640.47 support is critical for short-term direction and advises caution due to the dominant selling bias. "Until META clearly reclaims the $656.04 resistance, I remain defensively positioned and would avoid chasing upside here."

Previously it was reported that Meta was allowed to proceed with planned layoffs despite employee challenges to the company's use of AI-driven evaluation tools. The current combination of restructuring momentum and expanded AI initiatives heightens short-term uncertainty, making price stability above $640.47 a critical indicator to monitor for potential downside risk.

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.