Meta Shares Drop 9% in Worst Week Since 2021, One Analyst Buys
Meta's stock suffered its steepest weekly decline in four years. Analyst Mike Khouw sees the sell-off as a buying opportunity.
Meta Platforms shares tumbled roughly 9% this week, marking the company's worst weekly performance in four years and rattling investors who had grown accustomed to the social media giant's steady climb. The sharp decline wiped out billions in market capitalization and pushed the stock well below recent highs, raising questions about whether the sell-off reflects deeper structural concerns or a short-term overreaction.
Amid the carnage, analyst Mike Khouw stepped forward with a contrarian bet, moving to buy Meta shares as other traders headed for the exits. Khouw's decision signals confidence that the market has overcorrected and that the underlying fundamentals of the company — its advertising dominance, AI investments, and massive user base — remain intact despite the week's turbulence.
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The sell-off comes at a sensitive moment for big tech broadly, as investors reassess valuations in an environment of persistent macroeconomic uncertainty and evolving regulatory pressure. Meta, which has poured enormous capital into artificial intelligence infrastructure and its metaverse ambitions, faces ongoing scrutiny over how those bets will translate into near-term earnings growth.
For contrarian investors, sharp single-week declines in otherwise fundamentally strong companies have historically presented entry points — though the risk remains that further downside is possible if sentiment continues to deteriorate. Khouw's move underscores a divide forming on Wall Street between those who view Meta's dip as a warning sign and those who treat it as a discount window on a long-term growth story.
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