META Stock Still Trails Mag 7 Peers Even After New Subscriptions, Layoffs, Cloud Plans — Retail Sniffs Buying Opportunity

• META stock is down 9% year-to-date.
• Last month, the social media giant announced major layoffs, impacting about 10% of its workforce.
• Stocktwits sentiment for the stock rose to ‘extremely bullish’ from ‘bullish’ as of late Monday.

Meta Platforms Inc. shares declined 5.1% on Monday without a clear trigger, their worst drop in over a month, leaving traders questioning their positions on the company that just announced a major workforce reduction as well as new subscription plans for its social media apps.

Still, retail investors viewed the dip as a loading opportunity. META was trending among the top tickers on Stocktwits late in the day, with retail sentiment climbing to ‘extremely bullish’ from ‘bullish.’

Retail, Analyst View On META

“$META market not looking healthy. You have dogs*** stocks that haven’t done anything in decades like IBM & INTC rocketing on speculation while almost everything else is getting taken behind the woodshed. Feels like the rent is about to come due & the market is gonna pull back in the summer,” a trader said.

Another wrote: “$META 5% sold for no reason, huge pump tomorrow.” A third trader said they and their associates acquired the stock at around $606-$607. 

Trading tech stocks has become increasingly challenging amid sharp divergence and heightened volatility across the sector. 

While some “Magnificent Seven” names, including Meta and Microsoft, have lagged this year, semiconductor stocks led by Intel and AMD have staged powerful rallies. Meanwhile, the beaten-down software sector has also gained momentum in recent weeks. 

Currently, 57 of 64 analysts covering META have a ‘Buy’ or higher rating on the stock and the remaining seven rate it ‘Hold,’ per Koyfin data. Their average price target of $826.75 implies a 38% upside to the stock’s last close.

In terms of 12-month forward price-to-earnings, Meta Platforms, Inc. trades at 18.3x, making it the cheapest stock in the “Magnificent Seven” group by that measure. The stock’s Relative Strength Index (RSI) stood at 41.61, indicating relatively subdued momentum. An RSI reading above 70 is generally considered overbought, while a reading below 30 suggests oversold conditions; levels around 50 typically indicate neutral momentum.

META Stock Move, Recent Catalysts

With Monday’s drop, META shares are down 9% year-to-date, the worst in the Mag 7 group. On the other end, GOOGL and NVDA are up over 20%, while the benchmark S&P 500 has gained 11%.

On May 20, the social media giant laid off about 8,000 workers, or 10% of its workforce, and moved a similar number of employees internally. Last week, Meta announced subscription offerings for its flagship apps — Instagram, Facebook, and WhatsApp — and outlined early plans to open its cloud computing infrastructure to external businesses.

Facebook Plus and Instagram Plus are priced at $3.99 per month and WhatsApp Plus at $2.99 per month, according to details shared with multiple media outlets at the time.

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