Meta stock price weakens below $680 as technical breakdown and AI megaprojects shift sentiment
Meta stock retreats as price structure breaks, even as CEO reveals aggressive AI infrastructure push
Meta Platforms (NASDAQ: META) opened the July 17 pre-market session on a cautious note after closing the previous day at $702.91, down 1.05%, following a decisive break below its multi-week ascending channel. The stock’s fall beneath the 20-day EMA at $710.18, a critical dynamic support since early May, indicates a weakening of short-term bullish momentum and points to a potential corrective phase.
Highlights
- META drops 1.05% to $702.91, breaking below ascending channel and 20-day EMA
- Next major support lies at $680–$650 as 50/100-day EMAs come into play
- CEO Zuckerberg confirms 'hundreds of billions' allocated to build Titan-scale AI superclusters
The breach below the channel structure, which Meta had respected for over two months, was coupled with a rejection near the $740 resistance level earlier this week. This pullback now places focus on the 50-day EMA at $679.61, coinciding with a key horizontal support near $680. If this level fails to attract dip buyers, downside pressure could extend toward the $650.60–$640 zone, where the 100-day EMA also resides.
Meta stock price dynamics (Source: TradingView)
Despite the near-term weakness, the long-term trend remains intact, with the 200-day EMA positioned lower at $613.24. Analysts note that the recent pullback may be linked to broader profit-taking across the tech sector, particularly after a strong post-earnings rally in Q2. The market is now awaiting Meta’s reaction at this support band to determine if the correction deepens or stabilizes.
Zuckerberg outlines multi-billion dollar AI expansion
Adding complexity to the technical backdrop is CEO Mark Zuckerberg’s announcement of aggressive plans to scale Meta’s AI capabilities. The company will invest “hundreds of billions” into building next-generation superclusters, with upcoming centers such as Prometheus and Hyperion projected to operate at 1 GW and 5 GW capacities, respectively. Meta’s initiative positions it to rival or surpass competitors like Microsoft, which earmarked $80 billion for AI infrastructure in 2025.
Zuckerberg emphasized Meta’s ambition to lead in compute per researcher and attract top AI talent. The firm has reportedly offered hundreds of millions in compensation to recruit from OpenAI, Google, and Anthropic. The scale of investment reflects a clear pivot toward monetizing AI through its platforms, i.e., Facebook, WhatsApp, and Instagram.
Previously, we noted that Meta was approaching a late-stage rally and risked near-term exhaustion. The current breakdown from its channel confirms that view, with the $680 level now critical to avoid a steeper decline.
