Meta consolidates near $733 as investors await earnings and AI partnership updates

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Meta consolidates near $733

Highlights

- Meta closes at $733.41 as traders await October 29 earnings report.

- Talks with Google Cloud and Oracle signal strategic AI partnerships.

- Technical chart shows support at $717.50 and resistance at $756.

Meta’s aggressive push into artificial intelligence remains central to its long-term growth narrative. In 2025, the company accelerated AI infrastructure spending and talent acquisition, but with rising costs, it has increasingly turned toward partnerships to balance innovation with efficiency. Reports indicate Meta is in advanced talks with Alphabet’s Google Cloud to use its Gemini models for enhanced ad targeting, supplementing an existing $10 billion, six-year deal.

In parallel, discussions with Oracle for a $20 billion cloud services agreement underscore Meta’s intent to diversify its computing base and reduce reliance on in-house expansion. The shift reflects a pragmatic strategy—leveraging third-party infrastructure to support AI-driven personalization, recommendations, and advertising, without further inflating capital expenditure.

Wall Street remains broadly optimistic ahead of Meta’s upcoming third-quarter report on October 29. Analysts at Bank of America forecast the company will outperform expectations, projecting $50 billion in revenue and $7.30 in earnings per share, compared to consensus estimates of $49.5 billion and $6.69, respectively. The firm also anticipates stronger fourth-quarter results, with revenue estimated at $58.8 billion and EPS at $8.90.

“Meta’s earnings momentum is likely to reassert leadership in the tech sector,” analysts wrote, pointing to the dual benefits of AI-driven ad performance and disciplined cost management.

Technical view: Key range defines the next move

Meta’s stock has been oscillating within a narrow range after breaking below its steep uptrend channel in late September. On the daily chart, shares recently tested and held support at $717.50—aligned with the 100-day exponential moving average (EMA)—indicating that buyers remain active at lower levels.

Meta price dynamics (Source: TradingView)

The stock faces immediate resistance at $756, defined by the supertrend indicator. The 20-day and 50-day EMAs, clustered near $733.10 and $727.99 respectively, reinforce a congestion zone that has capped price action over recent weeks. A clear breakout above $756 would pave the way for a retest of the $780–$800 range, while failure to hold above $717 could trigger a deeper retracement toward the 200-day EMA near $677. Long-term structural support remains solid around $620, last touched in April.

Momentum indicators are neutral but stabilizing, with RSI hovering near mid-range levels. This suggests that while the rally has paused, the underlying trend remains constructive as long as Meta holds above its intermediate supports.

Outlook: Balancing AI ambition with fiscal discipline

As previously discussed, Meta’s trajectory hinges on how effectively it manages the trade-off between AI investment and profitability. The emerging partnerships with Google Cloud and Oracle indicate a shift toward scalability through collaboration rather than internal overbuild. If upcoming earnings validate Bank of America’s bullish projections, the stock could regain traction toward prior highs above $780.

For now, the $717–$756 range serves as a key technical pivot. A sustained breakout higher would signal renewed investor confidence in Meta’s growth story, while a break lower could confirm a more prolonged consolidation phase.

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