- Meta remains choppy near the $650 level, influenced by AI sector sentiment, year-end positioning, and technical resistance.
- Despite short-term noise and advertiser pullbacks, longer-term expectations point toward higher prices.
Facebook or Meta continues to be very noisy, but the one thing seen over the last several days is that price is simply hanging around the crucial, psychologically important $650 level. It is worth noting that the Monday session is slightly positive, but it is also the ex-dividend date, so that will have some people looking to get involved. Nonetheless, this is ultimately a market that is going to rise and fall right along with the rest of artificial intelligence as traders try to get a handle on where that is going next.
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The market is sitting just below the crucial 50-day EMA as well as the 200-day EMA indicator, and both of those could cause a little bit of noise. Ultimately, after the massive gap down following the earnings report on October 29, there should be an attempt to fill that gap before it is all said and done, meaning the market should eventually get to the $750 level.
AI Exposure, Revenue Mix, and Market Positioning
One of the biggest problems is that Meta will, of course, move with the rest of the AI sector. As the market gets closer to the end of the year, there are people taking profit from big trades in artificial intelligence. As of late, there have also been more rumblings around the idea that perhaps AI is not profitable.
That being said, this is a good way to play AI mainly because Meta has plenty of other revenue, and AI is just part of the situation. Meta continues to be a major holding for most passive investing vehicles. The company has said it has seen a little bit of advertisers pulling back in terms of spending, but at this point in time, it is probably only a matter of time before advertisers come back, especially globally, to Meta platforms. That should turn things around.
Regardless, this is a market that is widely held, as the stock is one of the Magnificent Seven companies, and it is believed that eventually it will find itself much higher than current levels.
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