Meta Platforms stock faces potential 70% downside due to economic worries and competition from China

From Nasdaq: 2025-03-13 03:59:11

Meta Platforms stock (NASDAQ: META) has remained stable this year despite market fluctuations, but recent economic worries have caused a drop in share prices. President Trump’s tariff implementation and competition from China’s Manus AI assistant are adding pressure. Analysts predict META stock could fall as low as $200 per share.

Investors are concerned about META stock’s potential decline, as it previously lost over 70% of its value in a short period. In a downturn, could the stock drop from $600 to under $200? Consider a diversified portfolio for less volatility. Meta’s heavy investments in AI face challenges from competitors like Manus and could impact the stock further.

President Trump’s trade policies may negatively affect META, with increased tariffs on Chinese imports and semiconductor chips. This could raise Meta’s AI infrastructure costs and reduce consumer spending on advertising, impacting revenue streams. Despite AI advancements like DeepSeek and Llama, Meta faces pressure to evolve its technologies to stay competitive in the market.

During past downturns, META stock has performed worse than the S&P 500. As the U.S. economy faces uncertainty, investors are cautious about another recession. Historical data shows how stocks performed during previous market crashes, including META’s 73.7% decline in 2022 and a 32.9% drop during the COVID-19 pandemic in 2020.

META stock remains expensive, trading at nearly 25x trailing earnings. While Meta Platforms’ revenues have grown steadily, economic uncertainties could impact future growth. Investors must decide whether to hold, sell, or diversify their portfolio as META stock faces potential declines. Consider the impact of falling stock prices and market conditions on your investment decisions.



Read more at Nasdaq: 70% Downside For META Stock?