Meta slides as investors weigh hiring spree and technical breakdown

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Meta amid rising hiring costs

Highlights

- Meta closed at $705.30, down nearly 4%, after breaking below its rising channel.

- The stock is testing key support between $700 and $690 as selling momentum strengthens.

- Hiring moves led by Andrew Tulloch’s $1.5 billion deal highlight expansion costs and pressure.

From a chart perspective, Meta stock price has broken decisively below its mid-term rising channel after repeated rejections near $760. The pullback carried price into the $700 support area, which coincides with the 100-day exponential moving average at $716.83 and a horizontal demand zone between $700 and $690. The 200-day EMA at $673.25 now represents the next critical downside level, while long-term support remains near $620.

Meta stock price dynamics (Source: TradingView)

Momentum indicators show continued weakness. The Parabolic SAR has flipped above price, and the cluster of EMAs is turning lower, signaling persistent selling pressure. Volume data confirms that sellers dominated the recent breakdown, especially after the failed retest of the 50-day EMA around $737.30. Unless the stock closes back above $734, the short-term tone is likely to remain bearish.

While RSI readings are approaching oversold conditions, any short-term rebound could be limited without stronger market participation. A daily close below $690 may accelerate losses toward $673 or even $620, while stabilization above $734 would be the first sign of recovery.

Hiring drive shapes longer-term outlook

Beyond the technical picture, Meta’s latest news cycle reflects its focus on strengthening artificial intelligence capabilities. Reports surrounding Andrew Tulloch’s move from Thinking Machines Lab and his $1.5 billion compensation package underline the company’s determination to attract high-level engineering talent.

This strategy reinforces Meta’s long-term innovation potential but raises questions about the scale of expenses involved. The market’s recent reaction suggests investors are more concerned about near-term execution risk than future breakthroughs. The company’s setbacks with its Llama 4 model have also fueled skepticism over whether these hires will translate into rapid performance gains.

Analysts note that Meta’s efforts to integrate advanced technology across its advertising, cloud, and metaverse operations could eventually yield strong results. However, with rising development costs and cautious market sentiment, investors appear focused on financial discipline rather than long-range ambitions.

Outlook

In the short term, traders are watching whether Meta can defend the $700 support zone and avoid a close below $690. The 200-day EMA near $673 remains the next critical floor, while any sustained rebound toward $734 would indicate an early sign of strength.

Previously, we discussed Meta’s strong uptrend driven by investor enthusiasm for innovation and steady institutional demand. The current breakdown suggests a period of consolidation as markets digest higher costs and profit pressures. Despite the pullback, the company’s ongoing investment in research and data infrastructure keeps its long-term growth story intact.

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