Can Meta Platforms Stock Recover If Markets Fall?
Meta Platforms (META) stock is down 16.0% in 21 trading days. The recent slide reflects renewed concerns around slowing user growth and massive AI/Reality Labs investments, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Meta Platforms stands today.
- Size: Meta Platforms is a $1.5 Tril company with $189 Bil in revenue currently trading at $602.01.
- Fundamentals: Last 12 month revenue growth of 21.3% and operating margin of 43.2%.
- Liquidity: Has Debt to Equity ratio of 0.03 and Cash to Assets ratio of 0.15
- Valuation: Meta Platforms stock is currently trading at P/E multiple of 25.9 and P/EBIT multiple of 17.8
- Has returned (median) 74.5% within a year following sharp dips since 2010. See META Dip Buy Analysis.
These metrics point to a Very Strong operational performance, alongside High valuation – making the stock Fairly Priced. For details, see Buy or Sell META Stock
That brings us to the key consideration for investors worried about this fall: how resilient is META stock if markets turn south? This is where our downturn resilience framework comes in. Suppose META stock falls another 20-30% to $421 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- META stock fell 76.7% from a high of $382.18 on 7 September 2021 to $88.91 on 3 November 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 19 January 2024
- Since then, the stock increased to a high of $790.00 on 12 August 2025 , and currently trades at $602.01
| META | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -76.7% | -25.4% |
| Time to Full Recovery | 442 days | 464 days |
2020 Covid Pandemic
- META stock fell 34.6% from a high of $223.23 on 29 January 2020 to $146.01 on 16 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 20 May 2020
| META | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -34.6% | -33.9% |
| Time to Full Recovery | 65 days | 148 days |
2018 Correction
- META stock fell 43.0% from a high of $217.50 on 25 July 2018 to $124.06 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 9 January 2020
| META | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -43.0% | -19.8% |
| Time to Full Recovery | 381 days | 120 days |
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