Saad Ullah
Meta Platforms (NASDAQ: META) is feeling the heat. After months of choppy trading, the stock has dropped sharply back to levels not seen since early summer—a move that's catching the attention of both technical traders and macro watchers. The decline comes as investors recalibrate their expectations around growth stocks, while whispers of a possible Federal Reserve pivot toward easier monetary policy grow louder.
What's Happening with META?
As Tony Nash tweet suggests, the current weakness might be setting the stage for a liquidity-driven rebound down the road.
Meta is now trading around $659, marking its lowest close since mid-June. For months, the stock was stuck in a range between $700 and $780, but that sideways pattern recently broke down. The drop has erased nearly all gains since summer, signaling that institutional money is stepping back and risk appetite is fading—at least for now.
On the technical side, the chart tells a clear story. Multiple attempts to hold above $740 failed, each one creating lower highs—a classic sign that buyers are losing control. Once META slipped below $700, the selling accelerated, pushing the stock toward the $650–$670 zone where it found support earlier this year.
Key levels to watch:
- Support: $650–$670 (if this holds, a bounce toward $700 is possible)
- Resistance: $700–$720 (former support that's now a ceiling)
- Trend: Bearish short-term, cautious mid-term
If $650 gives way, the next stop could be $600—a full reversal of the mid-year rally.
Why QE Talk Is Back
The mention of QE in tweet isn't random. After a year of aggressive rate hikes, cracks are starting to show. Growth is slowing, inflation is cooling, and the Fed might have room to ease up in 2026. History shows that liquidity injections—like we saw in 2020–2021—tend to fuel rallies in high-growth tech stocks like Meta. Investors are positioning for that scenario, even if it's not imminent.
Meta's drop isn't happening in isolation. The Nasdaq 100 is under pressure across the board, with names like NVIDIA, Alphabet, and Tesla all pulling back. Rising bond yields and cautious earnings guidance are making investors rethink stretched valuations. Still, Meta's long-term fundamentals remain solid—the company is pouring resources into AI, infrastructure, and next-gen ad tech, which could pay off big once macro conditions improve.
META is now sitting at a critical juncture. If support at $650 holds and macro sentiment shifts, we could see a relief rally back toward $700. But if the selling continues and the stock breaks lower, it'll confirm that risk-off mode is still in charge. Either way, the next few weeks will test whether traders believe the QE narrative—or if more pain is coming first.
Saad Ullah
