Analysing META’s technical rebound and relative strength as the Magnificent Seven prepare for a high-stakes Q4 2025 earnings week.
Chart of the week: Meta platform
Key takeaways
- Earnings backdrop & relative underperformance: Most “Magnificent Seven” stocks have lagged major US indices in January 2026, but Meta Platforms stands out as it heads into earnings with only marginal YTD losses versus deeper declines in Apple and Microsoft.
- Technical rebound from major support: META’s 27% sell-off has stalled at a long-term ascending channel support, followed by a 9% rebound, and a reclaim of its 20- and 50-day moving averages, signalling a potential trend recovery.
- Momentum and relative strength turning up: Bullish RSI breakout and improving volatility-adjusted relative strength versus the S&P 500 suggest META could be poised for medium-term outperformance, provided key support at 585.77 holds.
A big earnings week for US mega-cap technology stocks as four of the so-called “Magnificent Seven” will report their respective Q4 2025 earnings results this week.
Microsoft, Meta Platforms, and Tesla will report their earnings results on Wednesday, 28 January, after the close of the US session, followed by Apple on Thursday, 29 January, also after the close of the US session.
Most “Magnificent Seven” stocks underperformed in January 2026
Fig. 1: YTD performance of Magnificent 7 & US stock indices as of 23 Jan 2026 (Source: MacroMicro).
So far, most of the “Magnificent Seven” stocks have underperformed year-to-date against the major US stock indices as of Friday, 23 January 2026.
The worst hit were Apple and Microsoft, which recorded losses of 8.8% and 3.7% respectively, versus positive returns seen in the S&P 500 (+1%), Nasdaq 100 (1.4%), Dow Jones Industrial Average (2.2%), and the small-cap Russell 2000 (+7.5%).
Meta Platforms and Tesla managed to clock in marginal losses of 0.2% each, while Amazon (+3.6%) and Alphabet (+4.8%) managed to beat the S&P 500, Nasdaq 100, and Dow Jones Industrial Average.
Interestingly, Meta Platforms’ (META) share price is beginning to flash early technical signals of a potential recovery, with growing evidence of a potential outperformance versus the S&P 500.
META’s 27% plunge halted at a long-term ascending channel support
Fig. 2: Meta Platforms' medium-term trend of 23 Jan 2026 (Source: TradingView).
The 27% decline seen in Meta Platforms from its current all-time high of 796.25 printed on 15 August 2025 to the 19 November 2025 low of 581.25 has managed to pause right at the long-term secular ascending channel support in place since the October 2022 low (see Fig. 2).
Several positive technical elements have emerged. The price actions of Meta Platforms have formed a “higher low” on 20 January 2025, rallied by around 9.8%, and closed above its 20-day and 50-day moving averages.
The daily RSI momentum indicator has staged a bullish breakout above its descending resistance and the 50 level, which suggests medium-term bullish momentum may have resurfaced.
The volatility-adjusted relative strength (VARS) of Meta Platforms against the S&P 500 exchange-traded fund (SPY) has started to turn up (shaped a “higher low”) above zero and traded back up above its 50-day moving average. These observations suggest the relative weakness of Meta Platforms may be starting to gain back some strength.
Read more on VARS: How to prevent the high-beta trap and find the relevant stocks
Watch the 585.77 key medium-term pivotal support on Meta Platforms. A clearance above 705.20 intermediate resistance may see the medium-term resistances coming in at 758.40 and 793.70.
On the other hand, a break and a daily close below 585.77 invalidates the bullish recovery scenario to expose the next medium-term supports at 516.50 and 479.80.
The information presented is historical information, and past performance is not indicative of future performance.
