Meta Platforms' META.O shares dip 1.2% in premarket trading, tempering a nascent recovery from their post-earnings slide.
Stock has languished below its 50-day moving average for eight consecutive sessions as of Monday, despite a 9.5% gain in the last two days.
The 50-day moving average is a closely watched measure of a stock's medium-term trend.
META reported a 91% drop in Q2 free cash flow last week, suggesting that the social media giant's costly AI buildout was taking a toll on its finances.
Any breakthroughs on the AI venture could also be overshadowed by "litigation noise" over the next few months, wrote Rohit Kulkarni, senior analyst at Roth Capital Partners.
"Lack of significant revenue upside puts a ceiling on META shares over the near term," he added.
As of last close, stock had lost 10.6% YTD vs. a 3.7% gain for the Roundhill Magnificent Seven ETF MAGS.N.
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