Meta reportedly eyes more layoffs, targeting 10% of staff

Meta’s planned 10% workforce reduction signals a continuation of its "Year of Efficiency" narrative, aimed at bolstering margins to offset heavy AI infrastructure spending; however, the market’s reaction is likely to be muted compared to previous rounds given the stock’s current technical exhaustion. With the RSI at 81.36 and the MACD showing a bearish crossover, Meta is technically overextended, suggesting that positive operational cost-cutting news may be insufficient to trigger a breakout above the $700 psychological barrier in the short term. Fundamentals remain strong, supported by the recent Broadcom custom chip deal extension, yet the stock is prone to a liquidity vacuum if it fails to hold the $660 support level, where a lack of volume could lead to rapid mean reversion. Traders should adopt a "wait and see" approach, as the combination of an overbought status and the impending layoffs creates a high risk of a "sell the news" pullback. Investors looking for entry should wait for a cooling-off period below $650, using the 20-day moving average as a primary support confluence, rather than chasing the current AI-hype-driven appreciation.