Meta Platforms Stock Hits Key Support – Buying Opportunity?
Meta Platforms (META) stock should be on your watchlist. Here is why – it is currently trading in the support zone ($589.24 – $651.26), 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 18.9% in average peak returns.
| Peak Return | Days to Peak Return | |
|---|---|---|
| 10/4/2024 | 0.0% | 0 |
| 12/2/2024 | 24.4% | 74 |
| 5/2/2025 | 32.4% | 102 |
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?
Rebound Likely Amid AI-Driven Efficiency & Ad Strength
Meta’s strong Q3 2025 revenue and EPS growth, combined with analyst consensus for significant upside, position it favorably. The strategic pivot from loss-making Reality Labs towards aggressive AI infrastructure investments, despite high CapEx, aligns with industry tailwinds in AI-powered advertising and user engagement. While competitive and regulatory pressures exist, Meta’s efficient operations and innovative ad systems could drive a rebound, especially given its lower P/E relative to peers. The upcoming Q4 2025 earnings on January 28, 2026, will be critical for affirming momentum.
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 26.7
| META | S&P Median | |
|---|---|---|
| Sector | Communication Services | – |
| Industry | Interactive Media & Services | – |
| PE Ratio | 26.7 | 24.6 |
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| LTM* Revenue Growth | 21.3% | 6.4% |
| 3Y Average Annual Revenue Growth | 17.3% | 5.7% |
| 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% | 18.4% |
| LTM* Free Cash Flow Margin | 23.7% | 13.5% |
*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.
Still not sure about META stock? Consider the portfolio approach.
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