Not a buy/sell advice. This post is published on November 11, 2025
1 big thing: Dips in “golden stocks” are buying opportunities, not reasons to panic. The history of Meta Platforms proves this rule.
The flashback (2021-2022):
- The peak: Meta stock neared $400.
- The crash: The stock plummeted to approximately $80.
- The Why: High valuations, a broad tech correction post-2020 rally, rising interest rates squeezing client ad spend, and fears over the costly pivot to the Metaverse.
The payoff:
| Action | End Value (2025) | CAGR (Approx.) |
|---|---|---|
| Do Nothing (Hold from $400) | $800 | 19% |
| Buy the Dip (and trade options) | $800+ | 25-30% |
The lesson: Simply holding through the fear delivered near-20% annualized returns. Aggressive buying at the bottom would have delivered much more.
The Current Drop: A Deeper Buy Signal?
The irony: The current correction in 2025 is fundamentally different from the 2022 crisis.
- Then (2022): Declining revenue growth, high competition (TikTok), and massive, uncertain Metaverse spending.
- Now (2025): Revenue is NOT shrinking. In fact, Meta is set for massive capacity expansion.
The new fear: Investors are worried about the sheer scale of the company’s new capital expenditure plans ($70B+) dedicated to building an AI Superintelligence infrastructure.
- The core: This spending is seen by some as a repeat of the ‘Metaverse spending mistake’—too much money for an unclear, long-term return.
- The counter: Unlike the Metaverse pivot, AI directly enhances Meta’s core, highly profitable advertising business (better targeting, better engagement) and expands its future revenue opportunities.
The smart takeaway: When a fundamentally strong business corrects, the reason is often fear (or a massive, one-time charge like a tax hit, as seen recently) rather than genuine financial stress. Be greedy when others are fearful. Do not hesitate to buy high-quality companies when the market puts them on sale.