Meta Platforms price forecast: More upside likely? META extends gains amid oversold signals

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Meta Platforms rises 1.40% today

Highlights

Meta Platforms shares are trading at $636.13, below MA-20, MA-50, and MA-200, signaling persistent multi-timeframe bearish pressure despite a 1.40% daily gain.
Meta announced record AI capital spending with a $30 billion bond sale, raising full-year capex to $70–$72 billion, while Q3 adjusted EPS hit $7.25, beating forecasts amid higher costs.
Momentum and oscillators indicate persistent deep oversold conditions, with the five-day range projected at $616.41–$620.49 and probability of a price increase under 20%.

AI investment-driven cost surge and bond financing fuel pullback

Meta Platforms announced record capital spending plans to advance its AI infrastructure, including a $30 billion bond sale to fund the effort, which contributed to a recent sharp pullback in share price. The company reported strong third-quarter growth with international revenue momentum, while higher expenses from AI talent acquisition, infrastructure expansion, and legal matters significantly increased overall costs. Adjusted EPS for Q3 reached $7.25, beating expectations, though a one-time non-cash tax charge led to lower GAAP EPS. Meta also raised its full-year capital expenditures outlook to between $70 billion and $72 billion, accompanied by a recent quarterly dividend payment and increased institutional holdings.

Oversold technical signals persist as bounce fails to shift momentum

Momentum indicators reflect persistent weakness: the MACD signals a bearish trend and the ADX shows low trend strength. Multiple oscillators, including RSI (27.82), CCI, Stoch RSI, and BBP, register deep oversold conditions, highlighting dominance by sellers intraday. The Awesome Oscillator also points to a bearish direction, in line with the prevailing trend. There is a clear divergence: despite the intraday bounce, the oversold and bearish momentum signals persist, suggesting any recovery remains fragile. The nearest dynamic support is seen near $692.59 (Ichimoku Kijun), with additional resistance at the MA-50 ($731.39).

Further declines likely as narrow consolidation meets weak trend

Over the next five trading days, the expected range is $616.41 to $620.49. The probability of a price increase is very low (less than 20%), making further declines more likely. In the baseline scenario, META is likely to consolidate within this narrow corridor as both daily and weekly trend momentum remain weak. In a bullish scenario, the price would need to break above resistance around $692.59 to confirm a reversal. If bearish pressure resumes, a drop below $616.41 would expose further downside, given the lack of strong support nearby.

Viktoras Karapetjanc, Traders Union expert, notes that despite Meta's ongoing capital investments in AI, recent spending announcements and a sharp pullback have pressured the stock below key moving averages. Karapetjanc sees that while momentum remains weak, institutional inflows and continued product innovation support Meta’s long-term growth story on a fundamental and macro level. The analyst believes the oversold readings could underpin a recovery if bullish catalysts emerge, though near-term consolidation is likely unless strong resistance at $692.59 is overcome. As Karapetjanc emphasizes, "Meta’s bold investment in AI is laying the groundwork for future performance—patient investors may benefit most once the current volatility subsides."

Previously it was noted that Meta's technical setup showed short-term weakness as the stock fell below its key moving averages. The article highlighted that the bias remains bearish until the company can reclaim $660 and then the 200-day EMA to regain investor confidence.

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.