Meta Platforms (META) stock has dropped about 16% over the past 21 trading days. This recent decline signals renewed worries regarding slowing user growth and substantial investments in artificial intelligence and reality labs, but significant drops like this often raise a more difficult question: is this weakness temporary, or an indication of deeper issues in the narrative?
The Meta Platforms logo (formerly Facebook), the American multinational technology conglomerate founded by Mark Zuckerberg that owns and operates some of the world’s most used social media platforms like Facebook, Instagram, or WhatsApp, appears on a MacBook in Barcelona, Spain, on February 10, 2025. (Photo by Joan Cros/NurPhoto via Getty Images)
NurPhoto via Getty Images
Before assessing its resilience during downturns, let’s examine where Meta Platforms stands at this moment.
- Size: Meta Platforms is a $1.5 trillion company with $189 billion in revenue, currently trading at $602.01.
- Fundamentals: Last 12-month revenue growth is 21.3% with an operating margin of 43.2%.
- Liquidity: It has a Debt to Equity ratio of 0.03 and a Cash to Assets ratio of 0.15.
- Valuation: Meta Platforms stock is currently trading at a P/E multiple of 25.9 and a P/EBIT multiple of 17.8.
- It has provided a median return of 74.5% within a year following sharp declines since 2010. Refer to META Dip Buy Analysis.
These indicators suggest a Very Strong operational performance, along with a High valuation, making the stock Fairly Priced. For more information, see Buy or Sell META Stock.
This leads us to a crucial consideration for investors concerned about this decline: how resilient is META stock if markets head downward? This is where our downturn resilience framework becomes relevant. Suppose META stock drops an additional 20-30% to $421 — can investors confidently retain their holdings? It appears that the stock has underperformed compared to the S&P 500 index during various economic downturns, based on (a) the extent of the stock’s decline and, (b) the speed of its recovery. Below, we take a closer look at each of these downturns.
2022 Inflation Shock
- META stock experienced a decline of 76.7% from a peak of $382.18 on 7 September 2021 to $88.91 on 3 November 2022, compared to a peak-to-trough decrease of 25.4% for the S&P 500.
- Nonetheless, the stock completely recovered to its pre-Crisis peak by 19 January 2024.
- Since that time, the stock rose to a peak of $790.00 on 12 August 2025 and currently trades at $602.01.
2020 Covid Pandemic
- META stock declined by 34.6% from a peak of $223.23 on 29 January 2020 to $146.01 on 16 March 2020, against a peak-to-trough drop of 33.9% for the S&P 500.
- However, the stock completely returned to its pre-Crisis height by 20 May 2020.
2018 Correction
- META stock dropped 43.0% from a high of $217.50 on 25 July 2018 to $124.06 on 24 December 2018, compared to a peak-to-trough decrease of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 9 January 2020.
Feeling anxious about META stock? Consider a diversified portfolio approach.
Move Beyond Individual Stocks With A Multi-Asset Portfolio
Single stocks can be unpredictable, but various assets respond differently. A multi-asset portfolio can minimize downside risks while allowing for potential gains.
The asset allocation strategy from Trefis’ wealth management partner based in Boston delivered positive returns during the 2008-09 period when the S&P suffered losses exceeding 40%. The partner’s approach currently includes Trefis’s High-Quality Portfolio, which has consistently outperformed its benchmark, encompassing all three – the S&P 500, S&P mid-cap, and Russell 2000 indices.
