Meta Platforms‘ (META 2.66%) stock price has been beaten down even more severely than the broader market over the past few weeks. The stock is down nearly 30% from the all-time high it reached in February, while the S&P 500 is off by almost 18%, and the Nasdaq Composite is down almost 23%, firmly in bear market territory. But the social media company’s sell-off may be seen by some as a buying opportunity.

Meta owns the popular apps Facebook, Instagram, Threads, Messenger, and WhatsApp, so it isn’t directly affected by the tariffs President Donald Trump has imposed on imported goods from nearly every country. But given that it derives most of its revenue from advertising, could it still wind up a victim of these tariffs?

Advertising budgets are in focus as tariffs surge

The bear case for Meta Platforms in the current environment is mainly tied to consumer sentiment. If tariffs, counter-tariffs, and trade wars cause the prices of goods to rise, consumers won’t be able to buy as much. As a result, companies may reduce their advertising spending. Advertising is notoriously one of the first places companies cut their budgets to streamline costs during recessions and even in anticipation of economic downturns. That may happen here soon.

While I’m not predicting a recession, tariffs will cause the price of goods to rise, decreasing spending power and having the same effect of leading consumers to be more conservative with their money. The jury is still out about how much these tariffs will affect the American consumer.

But if corporate advertising budgets are affected, Meta Platforms could be in for some pain. In the fourth quarter, Meta generated $48.4 billion in revenue, $46.8 billion of which came from advertising. Additionally, the operating margin from this division is outstanding. In Q4, its Family of Apps division posted a 61% operating profit margin. Few companies can match this, but that’s not Meta’s overall profit margin.

Meta is trying to get away from being a one-trick pony, so it’s heavily investing in its Reality Labs division, which includes smart glasses, virtual reality headsets, and many other devices that integrate AI with commonly used items, as well as the company’s metaverse platforms. However, the segment has thus far been a money pit. In Q4, Reality Labs booked revenue of $1.1 billion and an operating loss of $5 billion.

If one of these products becomes a hit, Reality Labs could completely transform how investors view Meta’s stock. But as of now, advertising is its primary focus.

So, is Meta a stock to buy now? Or should investors avoid it?

Meta’s stock is far cheaper than it has been in some time

Following the sell-off, Meta’s stock now trades for a fairly attractive valuation. 

META PE Ratio data by YCharts.

While we’re still a long way away from the dirt-cheap levels the stock was trading at in early 2023, 21 times forward earnings is an attractive valuation for Meta.

Should its investments in cutting-edge technology pay off, and considering its digital platforms are some of the top places for advertisers, Meta will likely emerge just fine from this trade conflict. While I wouldn’t be rushing to buy the stock right now with all of the activity in the market, I think it will be a great stock to pick up for the long haul in a few weeks once the dust settles, especially if we see some countries cut deals with Trump to get their tariffs lifted.