Meta Platform’s stock suddenly reversed course on Tuesday, plunging sharply.
This marked the end of a remarkable 20-day upward trend that began on January 17. The company also ended its 17-day streak of setting record-high stock prices, which had continued since January 23.
In afternoon trading, Meta’s shares tumbled $23.91 (3.25%) to $712.85.
This decline effectively erased gains, returning the stock to its February 6 closing price of $177.99.
While the Magnificent Seven (M7) tech stocks have been losing their dominance on the market, Meta had stood out as the only company outperforming the S&P 500 index this year. Now, it appears to be surrendering its upward momentum.
However, Meta’s recent rally wasn’t a bubble.
The company has exceeded earnings expectations and provided an optimistic outlook.
Additionally, the success of China’s AI company DeepSeek has reaffirmed the potential of Meta’s open-source AI initiatives.
No specific background has been identified for Meta’s sudden drop.
However, as the stock market declined, particularly in the tech sector, selling pressure concentrated on Meta, which had experienced a steep climb.
Only Nvidia and Microsoft gained among the M7 stocks, while the other five declined.
As Meta’s stock began to decline, investors rushed to take profits, resulting in substantial sell-offs.
