Meta Stock Forms First Death Cross Since May — Is The AI High Finally Wearing Off?

Core Viewpoint - Meta Platforms Inc has experienced its first Death Cross since May, raising concerns about the stock's momentum as it trades around $645, with the 50-day moving average falling below the 200-day moving average, indicating a potential loss of rally strength [1]. Stock Performance - META stock is up approximately 8% year-to-date, but the last six months have shown a more subdued and cautious trend [2]. Technical Indicators - Short-term indicators are negative, with the eight-day simple moving average (SMA) at $655.07 below longer-term averages, and the 20-day SMA at $630.25 serving as the nearest technical support if selling intensifies [3]. - The MACD is at -0.78, indicating diminishing momentum, while the RSI is at 48.57, suggesting a market that is neither panicking nor aggressively buying [4]. Fundamental Analysis - Despite the technical signals, Meta's fundamentals remain strong, focusing on AI infrastructure, stabilizing Reels engagement, and enhancing efficiency. However, investor sentiment has shifted, with a more selective approach towards AI stocks as the megacap tech sector cools [5]. Market Sentiment - The current chart signals a softer message compared to the underlying story of the company [6]. Key Levels and Future Outlook - Attention is on the $630–$650 range; a bounce in this zone could quickly neutralize the Death Cross, especially if the broader tech market stabilizes. Conversely, a breakdown could lead to a mini-trend where Meta must defend support rather than break resistance [7].