Stay updated with the latest stock market news and insights
Weekly insights + SMS alerts
On a day when the tech-heavy Nasdaq dropped 1.15% and the S&P 500 slipped 0.20%, Meta Platforms Inc. (META) managed to eke out a modest gain. Shares traded up 0.30% to $595.27 as of Tuesday afternoon, suggesting some investors see value after a multi-month slide.
The move higher stands out because the broader tech sector was under pressure. But a single green candle doesn't erase the technical damage that's built up over recent months.
Meta is trading below all of its key moving averages — 1.3% below the 20-day, 4.4% below the 50-day, 5.7% below the 100-day, and 9.5% below the 200-day. The 20-day moving average is still below the 50-day, which is a short-term bearish signal. And that death cross from December 2025, when the 50-day fell below the 200-day, continues to cast a long shadow over the longer-term trend.
The relative strength index sits at 47.51, which is neutral territory. The stock isn't oversold, but it's not overbought either — it's just kind of hanging out in a consolidation phase.
For the short-term outlook to improve, Meta needs to get back above the low $600 range. But to really turn the trend around, it would have to reclaim those intermediate moving averages. Right now, key resistance is around $625, near the 50-day moving average. Support is at $595, a level buyers are currently defending.
On Monday, Meta rolled out an AI Mode for Facebook Search. Instead of showing a traditional list of links, the feature answers user queries using public content from Facebook Groups and Reels. It's a shift toward more conversational, AI-powered search — and some analysts see dollar signs.
One analyst estimated the AI search business could eventually generate as much as $10 billion in annual revenue for Meta. That's a nice potential upside on top of the company's core advertising business.
Wall Street is looking ahead to Meta's second-quarter earnings report, expected on July 29. Analysts are projecting earnings of $7.18 per share, up slightly from $7.14 a year ago. Revenue is expected to hit $60.19 billion, a big jump from $47.52 billion in the same quarter last year.
The stock trades at about 21.6 times earnings, which isn't crazy for a company with Meta's growth profile. The consensus rating is Buy, with an average analyst price target of $823.08 — implying significant upside from current levels.
Recent analyst actions include:
Meta scores well on fundamentals but continues to lag on momentum, according to market data. The stock has a Momentum score of 13.9, reflecting recent price weakness. But its Quality score of 85.51 and Growth score of 88.67 highlight the company's strong fundamentals and long-term growth profile. Its Value score of 52.19 suggests the shares are fairly valued relative to peers.
So the story here is a bit of a tug-of-war: solid business, weak price action. Which one wins out depends on whether the AI search opportunity and earnings growth can reignite investor enthusiasm.
Meta is a major holding in several growth-focused ETFs, which means fund flows can create additional buying or selling pressure. Key funds include:
Strong inflows or outflows in these funds can move Meta shares, so it's worth keeping an eye on them.
For now, Meta is holding the $595 line. Whether that support holds or breaks will likely depend on the broader market mood and how investors digest the AI search story ahead of earnings.
.jpeg)
Real-time alerts on price moves, news, and trading opportunities.
Join 20,000+ investors. No spam, ever.
