Meta Shares Drop 9% in Worst Week Since 2021: One Analyst Buys

Meta Platforms endured its worst weekly performance in four years, shedding roughly 9% of its market value in a stretch that rattled investors who had grown accustomed to the social media giant's prolonged run of outperformance. The decline stands out not just for its magnitude but for what it signals about shifting sentiment toward Big Tech at a moment when macroeconomic uncertainty and questions about AI spending returns are weighing on the sector broadly.

Into that turbulence, options strategist Mike Khouw is taking a contrarian stance, viewing the sharp pullback as a tactical entry point rather than a warning sign. His reasoning reflects a broader school of thought among experienced market participants: that high-quality, cash-generative businesses often become more attractive precisely when sentiment turns sharply negative, provided the underlying fundamentals remain intact.

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The selloff raises a legitimate question about whether this represents a temporary dislocation or the beginning of a more sustained correction for a stock that had been a market darling. Meta's continued investment in AI infrastructure and its dominant advertising revenue base have not fundamentally changed, which is the core of the bull case that investors like Khouw appear to be leaning on during the volatility.

For retail investors, the episode underscores a perennial tension in equity markets: distinguishing between price weakness that reflects genuine deterioration in a company's outlook versus weakness driven by broader market anxiety or profit-taking after an extended rally. Meta's 9% weekly decline, placed in the context of its longer-term appreciation, may look modest in hindsight — or it could mark a more meaningful turning point, depending on how the macro environment evolves in coming weeks.

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