Meta Platforms stock is up 30% this month on AI monetization optimism following the rollout of the company’s personal AI agent Muse. Investors are surely welcoming this rally after the shares spent more than a year in a narrowing range between roughly $700 and $500. And while Meta’s fundamentals seem to have deteriorated given that free cash flow has all but disappeared amid rising debt levels due to heavy AI CapEx, the market is ready to forgive all this if promised even bigger future profits.
The question is, how much further can the stock climb before sentiment switches again? If the Elliott Wave chart below is any guide, the bulls must be careful not to overstay their welcome.
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It reveals that the sideways trading, which began in early-2025, including the new all-time high near $800, has produced a clear triangle correction. Labeled (a)-(b)-(c)-(d)-(e), this pattern is known to always precede the final wave of the larger structure. Since the larger structure is most likely a five-wave impulse, we think this month’s sharp surge must be its fifth and final wave.
If this count is correct, a new record high lies ahead. Meta stock is likely to keep rising in the coming weeks and could eventually approach the $900 mark. However, once wave V is over, a bearish reversal can be expected to trigger a drop back to the support of wave IV near $500, if not lower. In other words, as was the case with Uber not that long ago following the same type of pattern, there is no need to worry about missing out on Meta.
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