Meta stock slides to $609 as investors question spending and accounting transparency

Traders Union
All News
Financial News
Meta stock slides to $609

Highlights

- Meta shares fall 2.9% to $609, erasing nearly $200 billion in market value since October.

- Analysts raise concerns over Meta’s $600 billion U.S. expansion plan and accounting practices.

- $600 emerges as key technical support after a breakdown below major moving averages.

From a technical perspective, Meta’s chart reflects a clear loss of momentum following a decisive break below its long-term ascending trendline in late October. The stock remains below all major moving averages — the 20-day EMA at $668, 50-day at $701, and 100-day at $704 — forming a bearish alignment that reinforces downside pressure.

Meta stock price dynamics (Source: TradingView)

The Parabolic SAR continues to print above price, confirming that sellers remain in control. Immediate support sits between $600 and $620, a region tied to April’s consolidation phase. A daily close below $600 could accelerate losses toward $575, with the next major technical floor near the 200-day EMA. However, RSI readings now hover near oversold territory, hinting that a short-term rebound could emerge if buyers defend the $600 level.

Spending plans spark investor unease

Meta’s weakness extends beyond the charts. The company’s decision to commit $1 billion toward a new Wisconsin data center, part of a broader $600 billion U.S. expansion through 2028, has rattled investors. The initiative aims to expand Meta’s artificial intelligence and advanced computing infrastructure, which CEO Mark Zuckerberg has described as “front-loading computing power” for the future of AI-driven superintelligence.

Yet critics argue the scale and timing of the investment appear excessive amid tightening economic conditions. Investor Michael Burry intensified the pressure this week, alleging that major tech firms — including Meta — may be understating depreciation expenses by extending asset lifespans, effectively inflating earnings by as much as 20% through 2028. The claim has raised fresh concerns about transparency in Meta’s accounting approach and its long-term profitability.

At the same time, Meta’s advertising margins continue to contract, while user growth in mature markets has slowed. The combination of elevated spending, declining efficiency, and valuation concerns has prompted several analysts to reassess the company’s risk profile, especially as sector rotations favor less speculative industries.

Sector flows compound downside pressure

Broader market trends have also turned against Meta. As investors rotate from high-growth technology into value and defensive sectors, stocks tied to the AI narrative have come under heavier selling pressure. On Wednesday, Tesla, Meta, and Palantir led tech declines, while Eli Lilly and Goldman Sachs advanced sharply — a pattern underscoring the market’s shift toward stable cash-flow businesses.

The S&P 500 remains near record highs, but capital flows have clearly shifted away from mega-cap tech. Stronger U.S. economic data and uncertainty over future Federal Reserve policy have made investors more selective, trimming exposure to companies with large forward-spending commitments and premium valuations.

In prior analysis, Meta was identified as vulnerable to a deeper pullback if it failed to hold its long-term support near $620. That view remains intact, with $600 now serving as the key pivot for traders. A close below this level would confirm a structural breakdown toward $575–$550, while a rebound could trigger a short-covering rally toward $650–$675. For now, both technical and fundamental signals suggest Meta’s correction phase is not yet complete, as confidence in its spending strategy remains fragile.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.