Meta Stock Slips 30% Below Highs. Should You Buy, Hold, or Sell Now?

Core Viewpoint - Meta Platforms (META) is experiencing significant challenges, with its stock down approximately 30% from its 52-week high, resulting in a loss of over $100 billion in market value due to legal issues, layoffs, and high AI spending [1] Legal Risks - Meta faces serious legal challenges, including a jury finding the company accountable for addictive platform design and a $375 million penalty for child safety violations, raising concerns about potential future lawsuits [2] - The stock has seen a sharp decline of nearly 8% on March 26 and is down 21% year-to-date, compared to a 9.7% drop in the Nasdaq Composite Index [2][3] Business Fundamentals - Despite legal uncertainties, Meta's business fundamentals remain strong, with $200.1 billion in revenue and $60.4 billion in net income for 2025, alongside a cash balance of $81.6 billion and a low debt-to-equity ratio of 0.27 [4] - The company has over 3.5 billion daily users across its platforms, indicating a robust underlying business model [4] AI Investment Concerns - Meta's AI spending is projected to reach between $162 billion and $169 billion in 2026, driven by significant investments in AI and infrastructure, including a new AI data center in Texas costing up to $10 billion [6] - The company is also offering substantial compensation packages to attract AI talent, which raises concerns about short-term margin pressure despite potential long-term benefits [6]