Meta Platforms (META) Stock Stabilizes after Major Upswing
Meta Platforms stock rose this week and then retained its gains despite a slipping stock market, but the long-term outlook is bearish.
Quick overview
- Meta Platforms (META) gained 0.34% on Tuesday, building on a previous 6.2% increase despite a general market decline.
- The company has shown resilience following news of an Iran-U.S. peace deal, with shares currently at $596 after a rough start to the year.
- While short-term performance appears positive, long-term trends remain bearish, with the stock 9.5% below its 200-day average.
- Meta's upcoming AI search feature could potentially generate $10 billion in revenue, and quarterly earnings are expected to show a 26% year-over-year increase.
As stock indices slipped Tuesday, Meta Platforms (META) held onto gains from the previous day and added 0.34% to the previous day’s 6.2% increase.
Meta enjoyed a boost from the news of the Iran-U.S. peace deal Monday, but as markets slipped this morning, Meta remained stable and ticked up slightly higher. Now at $596 per share, META is showing strength after months of downward trends.
Technology stocks experienced severe selling pressure in 2026, primarily caused by high tariffs and shareholder worries over capital expenditures. Meta suffered the same fate, losing 8.3% of its value since the start of the year, where it began at $650 per share.
Is Meta in Trouble?
Meta jumped early this week and has held on strong, but the short term picture is much different from the long term one. The data points toward a weak long-term trend that is mostly bearish, along a similar path as Microsoft (MSFT). The technology space has enjoyed a couple rallies so far this year but has mostly been bearish as investors are hesitant to jump on a sector that is obviously troubled in its attempts to keep up with AI technology and the expenses that accrue.
Meta’s outlook over the last 200 days is not pleasant for shareholders. The stock is 9.5% lower than its 200-day average, and investors need to understand that the short term outlook, while positive, is no indicator of the long-term forecast in this case.
On Monday, Meta revealed a new feature that would respond to search queries on Facebook using Facebook Reels content and posts from Facebook groups. This AI-powered search option function could dramatically increase revenue for the company, with some estimates anticipating around $10 billion from the feature.
Next month, Meta will release quarterly earnings, and they are expected to report around $60 billion in revenue. If so, that would be a significant increase year over year of 26% and could dispel concerns about their capex spending that is helping them to stay on the cutting edge of AI technology.
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