The Nasdaq-listed META Platforms stock opened Thursday’s trading session at $627 after falling nearly 2.6% the previous day. The dip comes as CEO Mark Zuckerberg is expressing concerns that his staff is developing AI infrastructure at a slower pace. He is worried that the company is unable to keep up with the growing competition. He also said that “AI should empower people, and not replace them,” but had fired nearly 8,000 employees in the last 12 months, citing AI. Zuckerberg also scrapped plans to fill an additional 6,000 open roles, indicating a hiring freeze.

All of these are affecting META stock’s prospects. Though its AI user base is more than 1 billion, it is mostly passive as it is bundled into Facebook, WhatsApp, and Instagram. On the heels of the turbulence, a stock market analyst on TradingView explained that traders who short META could make more profits than those who buy it. The analyst predicted that the equity could see a sharp correction that could send prices below the $500 level.

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META Stock: A Bigger Crash Incoming, Predicts Analyst

According to the technical analysis, META stock could decline to $485 and see a correction of close to 22%. The analyst said that the equity has entered a new bearish phase. He argued that the upper boundary of a long-term descending channel has been rejected. He shared a chart showcasing similarities between 2018 and 2026. The analysis argues that the pattern is currently representing the 2018 correction.

He also stressed that if META stock fails to hold on at $485, it could fall further to $450. “Our main long-term Target for META remains $485, which is on Support. And by the time it hits, it will be below the 1W MA200 as in late 2018. If the drawdown extends as in 2018, we can see a max drop to complete a -43.77% decline at $450,” he summed it up.