Does Meta still have momentum?

Massive winning streak

With Meta enjoying historic outperformance, it’s been a momentum trader’s dream. The stock has surged by more than 20% in 2025 and is one of the few Big Tech heavyweights in the green.

Moreover, Meta’s AI model – Llama – has more than 700 million monthly active users, and CEO Mark Zuckerberg said recently, “I expect Meta AI will be the leading assistant serving more than 1 billion people and Llama 4 will become the leading state of the art model. This is a massive effort, and over the coming years it will drive our core products and business, unlock historic innovation, and extend American technology leadership.”

As a result, while weakness emerged on Feb. 18, Meta has become one of investors’ favourite story stocks in 2025, and the trend could be your friend in the weeks ahead.

Momentum mastery

To position for further upside and still manage risk, monitoring Meta’s daily moving averages is a solid strategy.

For example, the blue, yellow, and brown lines mark the 15, 20, and 30-day MAs. If Meta’s momentum continues, it will keep bouncing off these short-term levels en route to higher highs. If not, the 20-day MA could be the best indicator, as prior closes below the key metric often marked trend shifts.

Highly overbought

One source of concern is the blue line at the bottom. Meta’s daily RSI has soared above 80, and the overheated sock will be due for a correction at some point. That’s why it’s so important to monitor the MAs and practice diligent risk management when trading trending assets.

Letting winners run

The best approach to Meta is to keep doing what’s best working. Riding the trend and placing a stop-loss order slightly below the 20-day MA could be a prudent strategy. That way, you can enjoy the ride if Meta rallies above $800, but not suffer too much damage if/when the overheated RSI helps foster a traditional pullback.