Meta Platforms stock has fallen 29% from its August 2025 record high of $796 to $562, raising questions about whether the selloff presents a value opportunity or further downside risk remains.
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Meta Platforms stock slides 29% from record high, raising value question
Meta Platforms Inc. shares have fallen 29% to $562 from a record $796 in August, leaving the social-media giant looking undervalued after the prolonged selloff.
The decline from the August 2025 all-time high has erased more than $200 in value per share. The stock's slide comes as investors weigh the company's heavy spending on artificial intelligence infrastructure against its core advertising revenue growth, with near-term margin pressure a key concern.
Meta's retreat mirrors a broader recalibration across mega-cap technology stocks that have driven much of the market's gains over the past two years. Alphabet Inc., Microsoft Corp., and other AI-focused peers have also faced questions about the return on their AI investments, though Meta's advertising-dependent model makes it especially exposed to any economic slowdown.
The selloff has brought Meta's valuation down significantly from its August peak. The company continues to generate substantial cash flow from its social media platforms, which include Facebook, Instagram, and WhatsApp, but investors are looking for clearer evidence that its AI spending will translate into revenue growth.
Near-term risks remain. Meta faces regulatory scrutiny in both the US and Europe, where data privacy rules and antitrust investigations could affect its advertising business. The company's next earnings report, expected in late July, will be a critical catalyst — any disappointment on revenue or an increase in capital expenditure guidance could push the stock lower.
For value investors, the 29% decline from the record high presents a potential opportunity in one of the world's largest digital advertising companies. Whether the stock rebounds or slips further will depend on Meta's ability to demonstrate that its AI investments are generating measurable returns, with the upcoming earnings report offering the first major test.
This article is for informational purposes only and does not constitute investment advice.
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