Meta Platforms Stock Down 20%,Time to Buy?
Meta Platforms (META) stock has fallen by 20.5% in less than a month, from $751.67 on 29th Oct, 2025 to $597.69 now. Should you buy this dip? Dip buying is a viable strategy for quality stocks that have a history of recovering from dips.
Dip buying is a viable strategy for quality stocks that have a history of recovering from dips. As it turns out, META stock passes basic quality checks. Historically, the median return for the 12-month period following sharp dips was 75% , with median peak return reaching 85%. We define sharp dip as stock going down 30% or more, in less than 30 day period.
Below, we get into details of historical dips and subsequent returns.
Historical Median Returns Post Dips
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| Period | Past Median Return |
|---|---|
| 1M | -0.3% |
| 3M | 21.3% |
| 6M | 55.2% |
| 12M | 74.5% |
Historical Dip-Wise Details
META had 4 events since 1/1/2010 where the dip threshold of -30% within 30 days was triggered
- 85% median peak return within 1 year of dip event
- 258 days is the median time to peak return after a dip event
- -14% median max drawdown within 1 year of dip event
| 30 Day Dip | META Subsequent Performance | |||||||
|---|---|---|---|---|---|---|---|---|
| Date | META | SPY | 1Y | Peak Return |
Max Drop |
# Days to Peak |
||
| Median | 75% | 85% | -14% | 258 | ||||
| 10272022 | -35% | -2% | 209% | 235% | -9% | 349 | ||
| 2072022 | -33% | -5% | -18% | 4% | -60% | 56 | ||
| 3122020 | -31% | -24% | 74% | 97% | -5% | 167 | ||
| 7312012 | -31% | 2% | 75% | 73% | -18% | 364 | ||
Meta Platforms Passes Basic Financial Quality Checks
Revenue growth, profitability, cash flow, and balance sheet strength need to be evaluated to reduce the risk of a dip being the sign of a deteriorating business situation.
| Quality Metrics | Value | Quality Check |
|---|---|---|
| Revenue Growth (LTM) | 21.3% | Pass |
| Revenue Growth (3-Yr Avg) | 17.3% | Pass |
| Operating Cash Flow Margin (LTM) | 56.8% | Pass |
| Leverage (see below) | – | Pass |
| => Interest Coverage Ratio | 88.7 | |
| => Cash To Interest Expense Ratio | 46.3 |
Not sure if you can take a call on META stock? Consider portfolio approach
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