Meta Platform’s (NAS100:META) share price slipped with geopolitical fears, which soured the mood for the company’s new AI release.
META – Daily Chart
META is back in a bearish posture and targeting the $582 level for near-term support.
Mark Zuckerberg unveiled Meta Compute, a new effort to build on AI solutions with data centres and energy capacity. The company is investing heavily in computing power to support more advanced AI solutions for Facebook, Instagram, and WhatsApp.
Recent research from Gartner projects global IT spending will grow 9.8% in 2026 and surpass $6 trillion for the first time. Spending is growing in AI-driven workloads and cloud infrastructure. Meanwhile, the data centre market is projected to grow at a 19.7% compound annual growth rate (CAGR) from 2025 to 2030 to around $1.11 trillion.
The trend will depend on positive market sentiment, and geopolitical strains may affect future spending. US stocks recently reached their highest valuations ever, raising the risk of a larger correction.
Stocks were also affected by hawkish comments from Minneapolis Fed President Neel Kashkari. He said the US economy is showing “resilience,” and he doesn’t see the “impetus” for another Fed rate cut this month.
Philadelphia Fed President Anna Paulson added, “I see inflation moderating, the labor market stabilizing, and growth coming in around 2% this year. If all of that happens, then some modest further adjustments to the funds rate would likely be appropriate later in the year”.
The market had been hoping for a faster path to Federal Reserve rate cuts, and that hope is weighing on tech stocks. The ongoing tensions between the President and the central bank are another worry for investors.
For Meta Platforms, the problem has been AI spending, as investors worry it will erode profitability, which has brought the company’s valuation down.
