Meta Platforms Inc. (META) is making headlines Tuesday as the company swings the axe at its Reality Labs division, cutting roughly 10% of the unit's workforce. It's not exactly subtle: when you've got about 15,000 people working on VR headsets and virtual reality social networks, and you're showing 1,500 of them the door, people notice.

The AI Pivot Gets Real

According to Bloomberg, the layoffs started Tuesday and signal a pretty clear shift in priorities. Meta is reallocating resources toward artificial intelligence, which lives primarily within the Meta Superintelligence Labs division. That group already went through its own significant restructuring last fall, making room for high-profile new hires including Alexandr Wang, the founder of ScaleAI.

The company isn't being shy about its AI ambitions either. Last week, Meta announced deals with three nuclear power companies to juice up Ohio-based data centers. The company also recently snapped up Manis, a Singaporean AI firm specializing in AI agents. The message is clear: virtual reality is taking a back seat while AI grabs the steering wheel.

Technical Picture Looks Rough

The stock isn't doing itself any favors today. Meta is currently trading below its key moving averages, a technical red flag for momentum traders. The stock sits 4.5% below its 20-day SMA, 2.2% below its 50-day SMA, and even further below its 100-day and 200-day SMAs. That's the kind of setup that makes chart-watchers nervous.

The RSI stands at 42.06, landing in neutral territory. That means there's no overwhelming buying or selling pressure right now, though it could shift if momentum picks up. Meanwhile, MACD has slipped below its signal line, another bearish indicator.

Key support sits at $581.50, with resistance at $673.50. If the stock tests support, it'll reveal whether buyers have any appetite left. A push through resistance, on the other hand, might signal the start of a turnaround.

Perhaps most concerning for bulls: a death cross appeared in December when the 50-day SMA dropped below the 200-day SMA. For technical traders, that's often interpreted as a sign of longer-term bearish momentum.

Still, zooming out to the 12-month view, Meta has managed a 3.08% gain, showing some resilience despite recent turbulence. It's not spectacular, but it suggests the longer-term trend hasn't completely collapsed.

Price Action

META Price Action: Meta shares were down 2.31% at $627.15 at the time of publication.