Meta Platforms Inc. (META) just hit a technical milestone that nobody really wanted to see. The stock logged its first Death Cross since May, and for a company that spent most of the year riding AI hype through every minor pullback, this feels like a different kind of moment.
With Meta hovering around $645, the 50-day moving average has slipped below the 200-day, a classic momentum warning that tends to make chart-watchers nervous. The stock is still up roughly 8% this year, which isn't terrible, but the past six months tell a more subdued story than the relentless climb we saw earlier.
The Technical Picture Isn't Pretty
Short-term indicators are piling on. The eight-day simple moving average sits at $655.07, stuck beneath the longer-term averages, while the 20-day at $630.25 marks the closest technical support level if selling accelerates from here.
The MACD (moving average convergence/divergence) reads negative 0.78, signaling that momentum is draining out of the rally. Meanwhile, RSI (relative strength index) at 48.57 suggests a market that's neither panicking nor particularly enthusiastic. It's the technical equivalent of a shrug, which for a stock that led the megacap rally most of the year feels noteworthy.
AI Optimism Meets Reality
The fundamentals haven't fallen apart. Meta is still pouring resources into AI infrastructure, stabilizing Reels engagement, and executing on efficiency gains. The business story remains largely intact.
But sentiment has clearly shifted. Investors are getting pickier about which AI plays deserve premium valuations, and megacap tech as a category has cooled off. Meta's recent drift suggests that expectations may have gotten ahead of the near-term catalysts that would justify the earlier enthusiasm. The chart is whispering something softer than the underlying business narrative.
What Happens Next Depends on Support
The $630 to $650 zone is now the key battleground. A solid bounce here could neutralize the Death Cross quickly, particularly if broader tech finds its footing. But if Meta breaks down through this range, the technical warning could evolve into something more persistent, forcing the stock into the uncomfortable position of defending support rather than challenging resistance.
The AI excitement hasn't vanished. It's just facing its first real test in months, and the technical signals suggest that traders aren't quite sure how this chapter ends. For a stock that spent the year powering through every dip, this pause feels significant.