Meta stock steadies at $715 as AI expansion offsets technical pressure

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Meta steadies at $715

Highlights

- Meta closed at $715.70, up 1.47%, rebounding from the $707–$710 support zone.

- The stock remains below key resistance at the $735–$740 range.

- Meta’s $14B CoreWeave and potential $20B Oracle cloud deals reinforce its AI strategy.

Technical recovery meets resistance

On the daily chart, Meta is rebounding from the $707–$710 demand zone, an area that coincides with the 100-day exponential moving average (EMA) at $716.81. The 20- and 50-day EMAs, at $732.25 and $736.46 respectively, now form immediate resistance levels that bulls must reclaim to shift momentum back upward. The recent rejection near $795 in September triggered a corrective phase that saw price break below the mid-channel support of its multi-month uptrend.

Meta price dynamics (Source: TradingView)

Momentum indicators reflect cautious sentiment. The relative strength index sits near 42, suggesting the stock is approaching oversold territory but lacks strong buying pressure. A decisive close above $740 would restore near-term bullish bias and pave the way for a retest of $775. Conversely, a failure to hold above $707 could invite further downside toward the 200-day EMA at $673, marking a full test of the broader rising trendline.

AI and cloud partnerships bolster long-term outlook

Beyond the charts, Meta’s fundamentals remain compelling. The company has deepened its push into artificial intelligence infrastructure through a series of multi-billion-dollar partnerships and strategic investments. Its $14 billion contract with CoreWeave and ongoing talks with Oracle for a potential $20 billion cloud deal underscore Meta’s ambition to secure vast computing capacity for AI development.

Additionally, the company’s $14.3 billion stake in Scale AI demonstrates a clear commitment to expanding its AI ecosystem. These deals collectively position Meta as one of the largest global consumers of high-performance computing, signaling that the company’s long-term innovation pipeline remains strong despite near-term volatility.

Market analysts note that while Meta’s spending trajectory could weigh on margins in the short run, the move enhances its leadership in AI-driven advertising, cloud-based services, and infrastructure. Investors appear divided between those viewing the stock’s correction as a healthy consolidation and those concerned about valuation risks following its meteoric rise earlier this year.

Outlook

In the coming sessions, traders will focus on whether Meta can reclaim its 20- and 50-day EMAs. Sustained trade above these levels would likely confirm a rebound and restore confidence toward the $775–$800 region. However, losing the $707 support zone could shift sentiment sharply lower, bringing $673 into play as the next line of defense.

Previously, we discussed Meta’s breakout potential within its long-standing ascending channel, driven by optimism surrounding AI infrastructure and cloud integration. The recent corrective move has not altered that structural narrative. With AI investment accelerating and institutional capital flowing into the sector, Meta’s long-term growth thesis remains intact—though technical recovery in the near term will depend on whether bulls can defend the current support base.

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