Saad Ullah
● Market analyst Fran Castro noticed that Meta (NASDAQ: META) has fallen to the same technical levels it hit back in April—a point that came right before a strong bounce. He thinks this setup could offer another chance for investors, as the stock looks oversold after weeks of decline.
● Meta has pulled back from over $750 to around $640, a drop of more than 15%. Technical readings like the RSI—sitting near 26—show oversold conditions that have historically led to recoveries. But there are real risks. If the broader market stays weak or Meta's ad revenue takes a hit from economic pressure, the stock could fall further toward $600 before finding support.
● Despite the correction, Meta's underlying business remains solid. The company still generates strong profits from advertising and continues pouring resources into AI and virtual reality through Reality Labs. Some cautious investors argue that even with attractive technicals, headwinds like rising interest rates and slower digital ad growth could cap any rally.
● Meta's situation mirrors what's happening across Big Tech—consolidation after hitting record highs. These "saturation" moments often draw institutional buyers looking to scoop up shares at a discount ahead of the next rally.
Saad Ullah
