Buy or Sell Meta Stock?
November 19, 2025
Meta Platforms (META) stock has decreased by 20.5% in under a month, from $751.67 on 29th Oct, 2025 to $597.69 currently. Is this dip a buying opportunity? Purchasing during a dip is a feasible strategy for quality stocks that have demonstrated a tendency to recover from declines. In fact, META stock meets basic quality criteria. Historically, the average return for the 12-month period following steep declines was 75%, with the median peak return reaching 85%. A steep decline is defined as a stock dropping 30% or more within a 30-day timeframe.
Below, we delve into details regarding historical dips and their subsequent returns.
Historical Median Returns After Dips
Historical Dip-Wise Details
META experienced 4 events since 1/1/2010 where the dip threshold of -30% within 30 days was hit.
- 85% median peak return within 1 year post dip event
- 258 days is the median duration to reach peak return after a dip event
- -14% median maximum drawdown within 1 year following dip event
Meta Platforms Meets Basic Financial Quality Criteria
Factors such as revenue growth, profitability, cash flow, and balance sheet stability should be assessed to minimize the risk of a dip indicating a worsening business condition.
Unsure if you should make a decision on META stock? Consider a portfolio approach.
Portfolios Outperform Individual Stock Selection
Stocks can surge or plummet, but long-term success derives from remaining invested. A well-constructed portfolio allows you to enjoy gains while mitigating the impact of drops in individual stocks.
The Trefis High Quality (HQ) Portfolio, which comprises 30 stocks, has consistently outperformed its benchmark, including all three – the S&P 500, S&P mid-cap, and Russell 2000 indices. What accounts for this? Collectively, HQ Portfolio stocks generated superior returns with reduced risk compared to the benchmark index, resulting in a smoother ride as illustrated in HQ Portfolio performance metrics.
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