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Meta Platforms stock plunges nearly 35% amid heavy AI investment and legal challenges

Analyst Insights
28 Mar 2026
Seeking Alpha
View Source
Bullish
pluang ai news

Meta Platforms' stock has fallen nearly 35% from its 2025 peak, entering a bear market despite ongoing aggressive investments in AI infrastructure and partnerships. The company faces pressure to monetize AI beyond advertising to justify its high spending and valuation. Despite these challenges and legal issues, Meta trades at a forward P/E of 17.4x, below the S&P 500 average, reflecting investor pessimism. However, some analysts maintain a Buy rating, viewing the selloff as an overreaction and highlighting Meta's scale, growth options, and execution track record as reasons for optimism.

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