Shares of Meta Platforms, Inc. (NASDAQ:META) are in the spotlight Tuesday after the company began cutting jobs within its Reality Labs division.

Refocusing On Artificial Intelligence

The Reality Labs division has about 15,000 workers, 10% of which can expect to be laid off starting Tuesday, according to Bloomberg. The division is behind products like virtual reality headsets and virtual reality social networks.

The cuts come from a growing focus on artificial intelligence, which is primarily worked on within the Meta Superintelligence Labs division. That division also underwent a significant culling last fall to make room for new hires, including ScaleAI founder Alexandr Wang.

Meta announced last week that it struck deals with three different nuclear power companies to power Ohio-based data centers. The company also recently acquired Manis, a Singaporean AI company that produces AI agents.

Meta Struggles To Regain Momentum

Meta is currently trading below its key moving averages, indicating bearish pressure in the market. The stock is trading 4.5% below its 20-day SMA, 2.2% below its 50-day SMA, and significantly below its 100-day and 200-day SMAs, which suggests a struggle to maintain upward momentum.

The RSI is currently at 42.06, which is considered neutral territory. This level indicates that there isn’t strong buying or selling pressure at the moment, but it could signal a potential for upward movement if momentum shifts. MACD is also below its signal line, indicating bearish momentum.

Key support is at $581.50, while resistance is at $673.50. If the stock approaches support, it may test buyers’ strength, while a breach of resistance could signal a trend reversal or continuation.

In December, a death cross occurred when the 50-day SMA crossed below the 200-day SMA. This is a critical signal for traders, often indicating a longer-term bearish trend.

Looking at the 12-month performance, META has gained 3.08%, which shows some resilience despite recent struggles. This modest gain suggests that while there may be short-term volatility, the longer-term trend has not completely turned negative.

Meta Stock Falls

META Price Action: Meta shares were down 2.31% at $627.15 at the time of publication, according to Benzinga Pro.

Read Next:

Image: Shutterstock.com