META Platforms stock opened at $627 on Thursday after a 2.6% decline, amid CEO Mark Zuckerberg’s concerns about slow AI infrastructure development and growing competition. Zuckerberg stated that “AI should empower people, and not replace them,” though the company has fired nearly 8,000 employees in the past year citing AI. A trading analyst has predicted a sharp correction, suggesting META could fall below $500, with a long-term target of $485, representing a potential 22% decline.
META Platforms stock opened Thursday’s trading session at $627 after falling nearly 2.6% the previous day. The dip comes as CEO Mark Zuckerberg expressed concerns that his staff is developing AI infrastructure at a slower pace.
Zuckerberg is worried that the company is unable to keep up with growing competition. He also said “AI should empower people, and not replace them,” though the company has fired nearly 8,000 employees in the last 12 months, citing AI.
Zuckerberg also scrapped plans to fill an additional 6,000 open roles, indicating a hiring freeze. All of these factors are affecting META stock’s prospects, despite its AI user base exceeding 1 billion.
That user base is mostly passive, as AI is bundled into Facebook, WhatsApp, and Instagram. On the heels of the turbulence, a stock market analyst explained that traders who short META could make more profits than those who buy it.
The analyst predicted the equity could see a sharp correction that could send prices below the $500 level. According to the technical analysis, META stock could decline to $485 and see a correction of close to 22%.
The analyst said the equity has entered a new bearish phase, arguing the upper boundary of a long-term descending channel has been rejected. The analysis argues the pattern is currently representing the 2018 correction.
The analyst also stressed that if META stock fails to hold at $485, it could fall further to $450. “Our main long-term Target for META remains $485, which is on Support. And by the time it hits, it will be below the 1W MA200 as in late 2018. If the drawdown extends as in 2018, we can see a max drop to complete a -43.77% decline at $450,” he concluded.
