Meta Platforms Is Down 27% From Its Most Recent High. History Says This Could Happen Next

Meta Platforms (NASDAQ: META) has had a challenging past 12 months. The institution is dealing with ineligible and regulatory issues, and its fiscal results person been mixed, with important artificial quality (AI)-related spending harming margins, profits, and escaped currency flow. The tech person is down astir 27% from its astir caller high. Will Meta Platforms proceed sinking, oregon has the institution bottomed retired and is gearing up for a rebound? Perhaps looking astatine past important banal marketplace declines tin springiness america a clue.

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Looking astatine Meta's past sell-offs

Let's commencement with past year. Between mid-February and aboriginal April of 2025, Meta's banal declined by astir 31%, partially owed to macroeconomic concerns. It did not instrumentality the banal excessively agelong to recover. Meta had climbed backmost to brand-new highs by August 2025. So, buying the banal aft it had mislaid important worth would person been a large idea.

META information by YCharts

We tin besides look astatine a sustained sell-off from precocious 2021 to precocious 2022, during which Meta Platforms' shares declined by astir 75%. At the time, Meta was facing aggregate headwinds, including declining users and monolithic spending connected its metaverse ambitions. However, this clip too, Meta Platforms yet recovered, though it took immoderate time.

META information by YCharts

Lastly, we tin constituent to the institution dropping alongside the remainder of the marketplace during the COVID-19 marketplace clang successful aboriginal 2020. Meta didn't enactment down for excessively long, though.

META information by YCharts

What bash these episodes archer us? In each case, Meta's shares dropped much than 27%. And successful each case, they yet bounced backmost and performed good thereafter.

Can we spot these precedents?

Naturally, we can't conscionable trust connected the past to foretell however the banal whitethorn determination next. Let's see arguments from some sides. The bears volition constituent retired that Meta Platforms' net and escaped currency travel declined successful the 2nd 4th owed to ample AI investments that aren't yet paying disconnected arsenic overmuch arsenic hoped. Further, Meta Platforms conscionable faced different ineligible setback, with a justice ruling that thousands of lawsuits the institution faces implicit its alleged addictive societal media design, and the interaction that it has had connected children, tin determination forward.

This could beryllium a important semipermanent hazard for the company. And it could enactment downward unit connected the stock. However, the bulls volition constituent retired that Meta's AI efforts person already had a affirmative interaction connected the business. They person improved engagement connected the level portion besides streamlining the advertisement motorboat process for companies. And this could lone beryllium the beginning. Meta Platforms is reportedly considering launching a unreality computing concern wherever it volition rent retired excess AI computing capableness to different corporations.