Meta Platforms(US:META) The Motley Fool·2025-03-21 08:08Core Viewpoint - Stock market corrections present investment opportunities, and despite a recent decline, Meta Platforms remains a strong long-term buy-and-hold candidate [1] Group 1: Recent Performance of Meta - Meta's shares experienced a significant decline of over 20% after a historic run of 20 consecutive days of gains, with current prices approximately 21% below their all-time high of around $741 per share [2] - The recent sell-off is attributed to macroeconomic factors rather than company-specific issues, with no significant negative developments affecting Meta directly [4][9] Group 2: Market Sentiment and External Factors - Negative headlines, including allegations from a whistleblower regarding collaboration with the Chinese government, are not seen as indicative of current company policies due to the whistleblower's departure in 2017 [3] - Broader market concerns, such as tariffs, disappointing economic data, and monetary policy changes, have contributed to the stock market's downturn, impacting Meta's stock price [4] Group 3: Valuation and Investment Opportunities - Meta's price-to-earnings (P/E) ratio has historically indicated opportune buying moments, with significant increases in stock price following dips to around the three-year average of 24 [7] - Currently, Meta's P/E ratio stands at 24.2, suggesting it may be a favorable time for investors to consider purchasing shares [8] - The decline in Meta's stock price offers an attractive entry point for long-term investors, supported by its large user base, high profit margins, and strong free cash flow [9]