Meta Platforms Forecast: Shares Trade Near 565 as AI Data Center Expansion Accelerates

Management is actively expanding partnerships in the field of data centers: the day before, an agreement was signed with technology conglomerate Reliance Industries Ltd. for the construction and subsequent lease of a new artificial intelligence data center in India. As part of the project, a 168.0-megawatt power plant is planned to be built in Jamnagar, which Meta Platforms Inc. will lease on a long-term basis. This deal is the second part of a contract worth more than 100.0 million dollars announced at the beginning of the year, which involves the partners using joint AI models to develop corporate products for Indian enterprises, and is part of a global plan under which the corporation has committed to investing 125.0–145.0 billion dollars in AI technology development.

In the second quarter, the company’s revenue may increase from 56.31 billion dollars to 60.18 billion dollars, above 47.52 billion dollars in the same period a year earlier, while earnings per share (EPS) may decline from 10.44 dollars to 7.18 dollars, remaining above last year’s 7.14 dollars. The company’s board of directors has already approved the payment of quarterly non-indexed dividends on Class A and Class B common stock in the amount of 0.525 dollars per share, equivalent to a yield of 0.37%, below the sector average of 1.06%. The transaction will take place on June 25, while the shareholder register closure is scheduled for June 15.

Support and resistance levels

On the daily chart, the trading instrument is moving within a corrective trend, holding above the support line of the channel with boundaries at 660.00–500.00.

Technical indicators are strengthening the sell signal renewed at the beginning of the month: the fast EMAs of the Alligator indicator are below the signal line, while the AO histogram is forming corrective bars in the negative zone.

Resistance levels: 580.00, 640.00.

Support levels: 550.00, 500.00.

Meta Platforms Inc. trading scenarios and forecast

Short positions may be opened after the price declines and consolidates below 550.00, with a target at 500.00 and a stop-loss at 570.00. Expected timeframe: 7 days or more. Long positions may be opened after the price rises and consolidates above 580.00, with a target at 640.00. Stop-loss — 560.00.