Meta Platforms Faces Challenges Amid Declining Stock Performance

Meta Platforms Inc. META has surprised many by standing out in a challenging tech landscape, but recent trends indicate that this could change soon.

This year, despite outperforming its Mag 7 peers, Meta’s stock has dropped 13.85% year-to-date, with a significant 13.67% decline occurring in just the past month.

Read also: Despite Tariff Turmoil, Bitcoin Outperforms ‘Magnificent 7’ Stocks In 2025 — Records Smaller Losses Than Nvidia, Tesla, Apple

“Meta’s current valuation remains competitively priced compared to its Mag 7 counterparts, which may account for the stock’s relative strength,” stated Ed Egilinsky, managing director at Direxion, in an exclusive interview with Benzinga.

However, with Meta’s stock plummeting nearly 10% over the last five trading sessions and a modest recovery of only +2.28% early Tuesday, traders are closely monitoring for potential changes.

Technical Indicators Show Warning Signs for Meta Stock

Chart created using Benzinga Pro

Currently priced at $516.25, Meta Stock looks weak from a technical standpoint. It is falling below its eight, 20, 50, and 200-day simple moving averages (SMAs), all of which indicate bearish trends. The eight-day SMA is at $559.78, while the 50-day SMA is significantly higher at $643.73.

Moreover, the MACD (moving average convergence/divergence) indicator has fallen steeply to -28.60. Additionally, the RSI (relative strength index) reads a low of 29.80, suggesting that although the stock is oversold, it struggles to gain momentum.

Investor Sentiment Shifts Due to Tariffs Ahead of Earnings

Initially, tariff discussions didn’t unsettle investor sentiment, but that perspective shifted. “At first, many investors perceived the tariff risks to Meta Stock as minimal. However, with the announcement of the tariffs, many have begun to reevaluate the potential impacts on Meta’s global advertising revenues, particularly in China,” Egilinsky remarked.

Meta is set to release its earnings report on April 30, which will be crucial. This announcement could either reinforce the current bearish trend or provide the momentum needed for a rebound.

As traders anticipate potential shifts, they are keeping a careful eye on short-term technical indicators.

Read Next:

Photo: Shutterstock