Why Meta Stock Is Down? Cathie Wood Sells The Magnificent 7 META Shares

Meta Platforms Inc. (NASDAQ: META), the tech giant behind social media platforms like Facebook, Instagram, and WhatsApp, has seen its stock take a noticeable tumble in 2025. As of March 19, 2025, Meta stock is sinking today, trading at $581.83 per share, reflecting a decline of about 18.8% over the past month and erasing its year-to-date gains.

Investors and analysts alike are questioning why Meta stock is down today, especially as it becomes the last of the so-called “Magnificent Seven” stocks to tumble into negative territory for the year.

This article dives into the reasons behind Meta Platforms stock’s decline, explores current price targets, and offers a Meta stock prediction for its future amid a volatile Nasdaq and broader market trends.

Meta Stock Price Today Hits November 2024 Lows

As reported by real-time financial data, Meta Platforms stock opened at $581.484 on March 19, 2025 in pre-market trading, with a daily high of $582.933 and a low of $581.45.

This marks a drop from its previous session close of $582.36 on Tuesday and a significant retreat from its 52-week high of $740.91. The company’s market cap stands at $1.475 trillion, but its share price has been under pressure, reflecting broader tech sector woes.

Compared to its February 18 peak, Meta’s share price has shed 22% in value, signaling a sell-off that has investors reevaluating their portfolios.

The Nasdaq Composite, a key index for tech stocks, has also faced volatility, contributing to Meta’s decline. Inflation, rising interest rates, and recession fears have created a challenging environment for growth stocks like Meta Platforms.

Despite these headwinds, Meta’s AI investments and its massive user base of nearly 4 billion monthly active users across its apps offer hope for a recovery—but not without hurdles.

Why META Is Sinking Today? Meta Platforms Stock and Earnings:

One major factor driving the question "why Meta stock is down" is its recent earnings performance—or lack thereof. While Meta reported strong Q4 2024 profits, its outlook for Q1 2025 has disappointed investors.

Analysts cite a weak turnover prediction, with advertising revenue—a cornerstone of Meta’s business—showing signs of slowing amid economic uncertainty. Bloomberg notes that Meta Platforms Inc. tumbled into negative territory on March 18, losing 3.7% in a single day and wiping out its 26% gain from earlier in 2025.

The company reported robust year-over-year growth in prior quarters, but the latest guidance suggests monetization challenges. Earnings per share (EPS) for the last quarter hit $8.02, beating the estimate of $6.76, yet the forward-looking EPS for Q1 2025 is pegged at $5.25, raising concerns about sustainability. Investors believe Meta’s heavy capital expenditures—projected at $60-$65 billion in 2025 for AI infrastructure—could strain cash flow if revenue growth falters.

AI Integration and Meta’s AI Investments: A Double-Edged Sword

Meta’s AI push, led by CEO Mark Zuckerberg, has been a focal point for both optimism and skepticism. The company’s open-source Llama models and Meta AI chatbot have surpassed 1 billion downloads, a milestone celebrated in early March 2025. Zuckerberg aims for Meta AI to serve over 1 billion users by year-end, backed by plans to deploy 1.3 million GPUs. However, as Investors.com reports, this AI milestone hasn’t stemmed the stock’s decline, with shares approaching a 3-month low of $581.616.

Analysts argue that Meta’s AI investments, while innovative, are increasing fixed costs at a time when flexibility is crucial. KeyBanc Capital Markets downgraded its price target on Meta from $750 to $710, citing “greater macro uncertainty” and competitive pressures from rivals like Microsoft and new AI chatbot entrants such as Manus. The experiment with artificial intelligence is a long-term bet, but short-term returns remain elusive, contributing to the current sell-off.

Metaverse Costs: A Persistent Drag on Meta Platforms Stock

The Metaverse, once hailed as Meta’s future, continues to weigh on its financial health. Reality Labs, the division behind virtual reality (VR) and augmented reality (AR) efforts like Oculus, has racked up significant losses—$13.7 billion in 2022 alone—with no clear end in sight.

Despite Zuckerberg’s vision of a virtual world enhancing user engagement, investor sentiment has soured on these costly experiments. The Globe and Mail highlights that Meta’s share price struggles partly stem from this unprofitable venture, as the company balances its social media dominance with unproven bets.

Nasdaq and Tech Tumble: Broader Market Pressures in 2025

Meta Platforms stock isn’t sinking in isolation; it’s part of a broader tech tumble. The S&P 500 and Nasdaq Composite have faced corrections, with the latter down 7.3% year-to-date and over 12% from its peak.

Inflation and Federal Reserve policies on interest rates have hit growth stocks hard, and Meta, as one of the last of the so-called Magnificent Seven stocks (alongside Apple, Amazon, Microsoft, Nvidia, Tesla, and Alphabet), has not been immune. Bloomberg reports that the Bloomberg Magnificent 7 Total Return Index is down 16% in 2025, with Meta becoming the final member to turn negative.

This broader market decline amplifies Meta’s challenges, as investors take profits amid recession fears and shifting sentiment. The company’s high price-to-earnings ratio, while attractive during bullish periods, now signals overvaluation to some, prompting a reevaluation of its investment upside.

Meta Stock Technical Analysis: Will Meta Stock Go Up?

Based on my technical analysis, the recent 20% correction in META stock price represents a "healthy" movement after a very long uptrend period.

The market is currently returning to the 200 EMA, the moving average that separates bull and bear trends, allowing for a reset of recent overvaluation. The current confluence of support around the $582 level may be a potential buying point.

However, if META drops below and breaks the trend line—which has been drawn and maintained since 2022—then bulls may have a problem. In such a case, I wouldn't rule out a decline to around $500, which represents the current six-month lows.

Resistance levels identified at:

• $600 - maximums that formed important resistance at the end of 2024
• $635 - peaks from December and early January 2025
• $741 - ATH (All-Time High) reached in mid-February 2025

Support levels visible at:

• $582 - current 200 EMA path, local bottoms and December minimums, and the long-term trend line drawn from 2022 lows
• $580-550 - broader zone defined by November lows, the upward line from September, and July and August maximums from last year
• $500 - round psychological level, coinciding with September minimums

Also, check my previous technology giants stock analysis: Why is Tesla Stock Up Today? Lower US Inflation Influences NASDAQ 100 and TSLA Price

Analyst Ratings and Price Targets for Meta Stock in 2025

Despite the downturn, analysts remain cautiously optimistic about Meta Platforms stock. The consensus price target, per Yahoo Finance and MarketBeat, hovers around $714-$738, suggesting an upside of 23-27% from the current price of $581.616.

Ratings range from “Strong Buy” (47 analysts) to a low estimate of $505 and a high of $935. Evercore ISI recently raised its target to $725, citing Meta’s AI integration and monetization potential, while KeyBanc’s downgrade reflects shorter-term concerns.

Table 1. META stock price targets

Cathie Wood’s ARK Invest sold over $7 million in Meta stock (12,000 shares) on March 18, its first sell-off in nearly a year, per Bloomberg and The Globe and Mail. This move by a prominent investor known for backing tech giants like Tesla has fueled bearish sentiment, though ARK’s shift to GitLab and Tempus AI suggests a portfolio rebalancing rather than a total loss of faith in Meta.

Cathie Wood’s Ark Investment is cutting its stake in Meta for the first time in around a year, the latest sign of a downturn in fortunes for big US tech stocks https://t.co/nt8QGKM6Bq

— Bloomberg Technology (@technology) March 19, 2025

Competition and Regulatory Headwinds: Instagram, WhatsApp, and Beyond

Meta faces stiff competition from TikTok and Snapchat, which are stealing user attention and ad dollars. Additionally, an upcoming FTC trial on April 14, 2025, could force Meta to divest Instagram and WhatsApp, spooking investors further. Regulatory scrutiny, including antitrust lawsuits and privacy concerns tied to past scandals like Cambridge Analytica, adds to the pressure. These external threats erode Meta’s market share and complicate its growth narrative.

You may also like: Google Makes Record $32B Bet on Cybersecurity With Wiz Acquisition

Meta Stock Prediction: Can It Recover in 2025?

So, should you buy Meta stock amid this sell-off? The prediction hinges on several factors. On the bullish side, Meta’s dominance in social media platforms, its 3.98 billion monthly active users, and AI-driven engagement (e.g., Instagram’s 6% time increase in 2024) provide a solid foundation. The company’s profile as a tech leader, bolstered by Zuckerberg and his sister Randi Zuckerberg’s influence, supports long-term optimism.

However, challenges like Metaverse losses, AI costs, and a potential recession could extend the decline. Analysts recommend Meta Platforms for its upside potential, but caution that near-term volatility may persist.

Meta Stock Forecast and Prediction Table for 2025

Table 2: Meta stock predictions

Why Meta Platforms Stock Is Down and What’s Next

Meta stock’s tumble in 2025 reflects a perfect storm of earnings concerns, Metaverse skepticism, AI investment costs, and a Nasdaq tech tumble. As the last of the so-called Magnificent Seven stocks to falter, Meta Platforms Inc. faces a pivotal moment.

While its current price of $581.616 is well below analyst price targets, the road to recovery depends on Zuckerberg’s ability to balance innovation with profitability. For investors, the question remains: Is this a dip to buy, or a trend signaling deeper trouble? Monitoring Meta’s next earnings, AI integration progress, and broader market conditions will be key to answering that in 2025.

FAQ: Understanding Meta Stock in 2025

Why Was Meta Stock Down Today?

As of March 19, 2025, Meta stock closed at $581.616, down slightly from its previous close of $582.36, continuing a broader decline of 18.8% over the past month from $715.9699. Several factors contributed to this drop. Bloomberg reported a 3.7% tumble on March 18, erasing Meta’s 26% year-to-date gain, driven by investor unease after Cathie Wood’s ARK Invest sold over $7 million in shares—the first such sell-off in nearly a year.

Is It Good to Buy Meta Stock Now?

Yes. At its current price of $581.616, Meta is trading well below its 52-week high of $740.91 and the analyst consensus price target of $763.7. This suggests a potential upside of 31.31%, making it attractive for long-term investors. Analysts maintain a “Strong Buy” recommendation, with 44 of 48 rating it positively. citing Meta’s dominance in social media (3.98 billion users) and AI growth potential.

Will Meta Continue to Rise?

Analysts from Zacks ($738.08 target) and MarketBeat ($719.26 average price target) predict growth, driven by ad revenue ($187.46B estimated for 2025, Exla Resources) and AI innovations like Llama and Meta AI, which aims for 1 billion users by year-end.

Is It Too Late to Buy Meta?

No, it’s not necessarily too late to buy Meta stock. At $581.616, the average price over the past month has dropped significantly from its February peak, offering an entry point below analyst targets like Evercore ISI’s $725 or TipRanks’ $763.71. Meta also benefits from its massive user base across Facebook, Instagram, and WhatsApp, plus AI-driven engagement gains.

Will META Stock Reach $1000?

Reaching $1,000 by the end of 2025 is ambitious but not impossible, according to some analyst outlooks. TipRanks and MarketBeat’s highest estimate is $935, implying a 60.76% upside from $581.616. LiteFinance’s upper range of $1,022 supports this possibility, driven by a bullish scenario: AI success (e.g., Llama 4, multimodal models), metaverse monetization, and a strong broader market recovery on the NYSE.