Core Insights - META stock has a history of extreme volatility, with four corrections exceeding 30% in less than two months, resulting in significant market capitalization losses [2] - Current systemic risks include regulatory challenges, persistent losses in the Metaverse segment, and substantial investments in AI infrastructure [5][6] Regulatory Environment - The FTC antitrust trial initiated in April 2025 poses a potential threat of forced divestiture of Instagram and WhatsApp, alongside a €200 million fine from the EU under the Digital Markets Act [5] - Future non-compliance could lead to daily fines up to 5% of global revenue [5] Financial Performance - Reality Labs reported an operating loss of $4.53 billion in Q2 2025, contributing to cumulative losses exceeding $50 billion since 2019 [5] - Projected capital expenditures for 2025 are estimated between $66 billion and $72 billion, leading to total expenses of $114 billion to $118 billion, marking a 20-24% year-over-year increase [5] Market Vulnerability - Historical data shows that META stock has experienced significant declines during market corrections, including a 43% drop in 2018 and a nearly 77% decline during the inflation shock [6] - The stock is also susceptible to declines during stable market conditions due to events like earnings reports and business updates [7]