Meta Platforms Stock at Support Zone – Bargain or Trap?
Meta Platforms (META) stock should be on your watchlist. Here is why – it is currently trading in the support zone ($620.07 – $685.35), levels from which it has bounced meaningfully before. In the last 10 years, Meta Platforms stock received buying interest at this level 3 times and subsequently went on to generate 14.8% in average peak returns.
| Peak Return | Days to Peak Return | |
|---|---|---|
| 12/6/2024 | 1.4% | 5 |
| 1/6/2025 | 16.9% | 39 |
| 5/23/2025 | 26.1% | 81 |
Yet, a support zone alone isn’t enough; rebounds are more likely when fundamentals, sentiment, and market conditions line up. How does that look for META?
Meta’s AI-powered ad recovery signals rebound likelihood.
Meta’s Q3 2025 earnings surpassed expectations, fueled by 26.2% revenue growth and AI-driven ad performance across its core Family of Apps. Analyst targets average over $818, indicating significant upside from current levels, despite some recent price target adjustments due to elevated AI capital expenditures. The strategic shift from metaverse to AI integration is enhancing ad targeting and user engagement. While Reality Labs losses persist, the company’s strong core business, active AI development, and user growth underpin a positive outlook, mitigating regulatory and content challenges.
- Better Value & Growth: META Leads Alphabet Stock
- What Could Spark the Next Big Move In Meta Platforms Stock
- Meta Platforms Stock Can Sink, Here Is How
- Is Meta Platforms Stock Built to Withstand More Downside?
- Meta Platforms Stock Down 20%,Time to Buy?
- Can Meta Platforms Stock Recover If Markets Fall?
How Do META Financials Look Right Now?
- Revenue Growth: 21.3% LTM and 17.3% last 3-year average.
- Cash Generation: Nearly 23.7% free cash flow margin and 43.2% operating margin LTM.
- Recent Revenue Shocks: The minimum annual revenue growth in the last 3 years for META was 7.5%.
- Valuation: META stock trades at a PE multiple of 31.6
| META | S&P Median | |
|---|---|---|
| Sector | Communication Services | – |
| Industry | Interactive Media & Services | – |
| PE Ratio | 31.6 | 23.5 |
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| LTM* Revenue Growth | 21.3% | 6.0% |
| 3Y Average Annual Revenue Growth | 17.3% | 5.4% |
| Min Annual Revenue Growth Last 3Y | 7.5% | 0.2% |
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| LTM* Operating Margin | 43.2% | 18.8% |
| 3Y Average Operating Margin | 37.4% | 18.3% |
| LTM* Free Cash Flow Margin | 23.7% | 13.4% |
*LTM: Last Twelve Months | For more details on META fundamentals, read Buy or Sell META Stock.
And What If The Support Breaks?
Meta’s stock isn’t immune to big sell-offs. It fell about 43% in the 2018 correction, nearly 35% during the Covid crash, and a whopping 77% amid the inflation shock. Even with all its strengths, Meta can take serious hits when the market turns. Solid fundamentals matter, but history shows sharp dips happen, no matter the company.
But the risk is not limited to major market crashes. Stocks fall even when markets are in good shape – think events like earnings, business updates, outlook changes. Read META Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
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