Meta Platforms Inc. (NASDAQ:META) is planning significant layoffs to cut costs and fund its growing artificial intelligence investments, underscoring a tradeoff between workforce reductions and AI spending.

According to Reuters, the move could signal a broader shift across the tech industry if other companies follow suit, potentially leading to fewer jobs as automation becomes a higher priority.

Potential Layoffs Tied To AI Spending Push

The company is considering reducing its workforce by at least one-fifth, though the timing and final scope remain undecided, according to Reuters.

Executives have begun internal discussions and asked senior leaders to prepare plans for possible cuts as Meta looks to fund large-scale AI investments while tightening operating costs.

The reported strategy reflects an effort to balance rising infrastructure expenses with expected efficiency gains from AI-driven workflows, aligning staffing levels with a more automated operating model.

Rising Costs and Industry Trend

Meta’s push comes as it ramps up spending on AI infrastructure, with plans to invest about $600 billion in data centers by 2028 while offering high compensation to attract top talent.

The approach mirrors moves by companies, including Amazon.com Inc. (NASDAQ:AMZN), which have also cut jobs while redirecting capital toward AI and infrastructure.

Technical Analysis

Meta is trading 5.0% below its 20-day SMA and 6.0% below its 100-day SMA, keeping the stock in a short-to-intermediate downtrend posture. Shares are up 5.41% over the past 12 months, but the current price sits closer to the middle-to-lower portion of its $479.80 to $796.25 52-week range than the highs.

The RSI is at 37.95, which keeps momentum in neutral territory but tilted toward the weaker side of the range. MACD is at -8.8175 versus a signal line of -5.0774, a bearish setup that suggests downside pressure is still dominating recent price action. The combination of RSI in the 30–50 range and bearish MACD suggests mixed momentum.

  • Key Resistance: $673.00
  • Key Support: $600.00

Earnings & Analyst Outlook

Looking further out, the next major catalyst for the stock arrives with the April 29, 2026 (estimated) earnings report.

  • EPS Estimate: $6.63 (Up from $6.43 YoY)
  • Revenue Estimate: $55.40 Billion (Up from $42.31 Billion YoY)
  • Valuation: P/E of 26.2x (Indicates premium valuation relative to peers)

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $851.03. Recent analyst moves include:

  • Tigress Financial: Strong Buy (Raises Target to $945.00) (March 18)
  • Wells Fargo: Overweight (Raises Target to $856.00) (February 23)
  • Argus Research: Buy (Maintains Target to $800.00) (February 2)

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for Meta Platforms, highlighting its strengths and weaknesses compared to the broader market:

  • Momentum: Weak (Score: 22.67) — The stock’s recent trend is lagging, which fits with the price sitting below key moving averages.
  • Quality: Bullish (Score: 91.47) — Underlying business quality screens well, which can help the stock hold up better on longer timeframes.
  • Value: Neutral (Score: 46.87) — The valuation looks more “fair-to-premium” than outright cheap, so buyers often want cleaner technical confirmation.
  • Growth: Bullish (Score: 87.84) — Growth metrics remain a key pillar of the longer-term bull case, even if the chart is choppy.

The Verdict: Meta Platforms’ Benzinga Edge signal reveals a growth-and-quality-led profile with weak momentum right now. That mix often favors patient investors waiting for momentum to turn back up (or for Support near $600.00 to hold) before leaning in.

Top ETF Exposure

  • Capital Group Growth ETF (NYSE:CGGR): 8.03% Weight
  • Invesco S&P 500 Momentum ETF (NYSE:SPMO): 7.80% Weight
  • Natixis Loomis Sayles Focused Growth ETF (NYSE:LSGR): 8.02% Weight

Significance: Because META carries such a heavy weight in these funds, any significant inflows or outflows will likely trigger automatic buying or selling of the stock.

Price Action

META Price Action: Meta Platforms shares were down 0.54% at $612.33 during premarket trading on Thursday, according to Benzinga Pro data.

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