Meta Shares Sink 9% in Worst Week Since 2021 — One Analyst Is Buying
Meta stock posted its steepest weekly drop in four years, but analyst Mike Khouw sees the selloff as a buying opportunity.
Meta Platforms shares fell roughly 9% this week, marking the social media giant's worst weekly performance in four years, as broader market turbulence and investor concerns battered the stock. The sharp decline erased billions in market capitalization and rattled shareholders who had grown accustomed to Meta's strong post-2022 recovery.
Despite the pain, options strategist Mike Khouw is moving against the crowd and treating the selloff as an entry point rather than a warning sign. Khouw's contrarian stance reflects a view that the underlying business fundamentals have not deteriorated enough to justify a decline of this magnitude, making the current price level attractive for longer-term positioning.
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Meta's stock had been one of Wall Street's standout performers over the past two years, powered by aggressive cost-cutting under CEO Mark Zuckerberg's so-called "year of efficiency" and a robust rebound in digital advertising revenue. A pullback of this scale, analysts note, can reset valuation multiples to levels that longer-term buyers find more palatable, even if near-term sentiment remains fragile.
The broader question for investors is whether this week's drop reflects temporary market noise or signals a more durable shift in confidence around big-tech ad spending and Meta's heavy artificial intelligence investment cycle. Khouw's decision to buy into weakness suggests he views the risk-reward balance as favorable at current levels, though volatility could persist in the weeks ahead.
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