Mark Zuckerberg's Meta Stock Poised To Snap 19-Day Winning Streak As Overbought Conditions, Employee Layoffs Dampen Sentiment

After Meta Platforms Inc. META made history on Thursday, advancing 19th day in a row and hitting a fresh 52-week high of $729 apiece However, it seems that the stock may not make it to day 20, as it’s falling in premarket on Friday.

What Happened: The company’s overbought technical indicators, combined with the negative publicity surrounding its recent 5% workforce reduction, may be contributing to its current downturn.

Shares of Mark Zuckerberg-led company, Meta, haven’t fallen since Jan. 16, however, they were lower ahead of premarket on Friday as the ETF tracking Nasdaq 100 index, Invesco QQQ Trust, Series 1 QQQ, was down 0.16% to $535.02, during the publication of this article.

During these 19 days, Meta surged 19.18%, outperforming QQQ which rose by 4.45% in the same period according to Benzinga Pro.

Why It Matters: Meta’s recent share price pullback in premarket hours may be due to overbought conditions.

Benzinga Pro data shows the stock’s moving averages were already bullish, with the price significantly above both short- and long-term averages. Momentum indicators were also strong, with a relative strength index of 82.45 and a positive MACD of 29.03, both indicating overbought territory. These factors suggest the stock’s upward trend may be nearing exhaustion, potentially leading to a short-term pullback or consolidation.

Additionally, Former Meta employees are criticizing the company’s latest layoffs, claiming they unfairly targeted high performers, including those on leave, despite CEO Zuckerberg’s assertion that the cuts were performance-based. Affected employees argue they have no history of underperformance and feel unfairly labeled.

Price Action: The shares were trading 0.32% lower in premarket. The stock has risen 21.58% this year and 53.94% over the last year.

The average price target among 43 analysts tracked by Benzinga is $935 with a ‘buy’ rating. The estimates range from $575 to $935 apiece. Recent ratings from Tigress Financial, UBS, and Citigroup suggest a $833.67 target, implying a potential upside of 14.76%.