Meta Stock Drops 10%, How Low Can It Go?

Core Viewpoint - Meta Platforms (META) stock experienced an 11.3% decline in a single day due to investor concerns over the company's plans to significantly increase capital spending to support its AI compute needs [1] Financial Overview - Meta Platforms is currently valued at $1.7 trillion, with a revenue of $189 billion and a stock price of $666.47 [7] - The company has shown a revenue growth of 21.3% over the last 12 months and maintains an operating margin of 43.2% [7] - The stock is trading at a P/E multiple of 28.7 and a P/EBIT multiple of 19.7 [7] - The company has a Debt to Equity ratio of 0.03 and a Cash to Assets ratio of 0.15 [7] Stock Performance - META stock declined 76.7% from a high of $382.18 on September 7, 2021, to $88.91 on November 3, 2022, while the S&P 500 saw a peak-to-trough decrease of 25.4% during the same period [8] - The stock fully regained its pre-Crisis peak by January 19, 2024, and reached a high of $790.00 on August 12, 2025, currently trading at $666.47 [8] - Historical performance indicates that META stock has shown a median return of 74.5% within a year after significant drops since 2010 [7] Investment Strategy - The Trefis High Quality Portfolio is suggested as a diversified investment strategy to mitigate stock-specific risks while providing upside potential [4] - The performance of META stock during economic recessions has been worse than the S&P 500, indicating the importance of assessing downturn resilience [3][9]