Core Insights - Meta Platforms (META) stock has declined approximately 16% over the past 21 trading days, raising concerns about user growth and investments in AI and reality labs [1] Company Overview - Meta Platforms is valued at $1.5 trillion with $189 billion in revenue, currently trading at $602.01 [3] - The company has experienced a 12-month revenue growth of 21.3% and an operating margin of 43.2% [3] - Meta's liquidity is strong, with a Debt to Equity ratio of 0.03 and a Cash to Assets ratio of 0.15 [3] Valuation and Performance - The stock is considered fairly priced with a high valuation and very strong operational performance [4] - META stock is currently trading at a P/E multiple of 25.9 and a P/EBIT multiple of 17.8 [9] - Historically, the stock has provided a median return of 74.5% within a year following sharp declines since 2010 [9] Historical Performance During Downturns - META stock saw a decline of 76.7% from a peak of $382.18 on September 7, 2021, to $88.91 on November 3, 2022, while the S&P 500 experienced a peak-to-trough decrease of 25.4% [10] - The stock fully recovered to its pre-crisis peak by January 19, 2024, and reached a peak of $790.00 on August 12, 2025 [10] - In the 2020 Covid pandemic, META stock dropped 34.6% from a peak of $223.23 on January 29, 2020, to $146.01 on March 16, 2020, compared to a 33.9% drop for the S&P 500, but it recovered by May 20, 2020 [10] - During the 2018 correction, META stock fell 43.0% from a high of $217.50 on July 25, 2018, to $124.06 on December 24, 2018, while the S&P 500 dropped 19.8%, with a full recovery by January 9, 2020 [11] Investment Considerations - Investors are encouraged to consider the resilience of META stock in potential market downturns, particularly if it were to drop an additional 20-30% [5] - The stock has historically underperformed compared to the S&P 500 during various economic downturns, both in terms of the extent of decline and recovery speed [5]