Meta (META) Stock Crash: Buy, Hold, or Sell? | 26% Oversold RSI & AI Growth Breakdown

Good morning traders and investors — I’m Norbert B.M., and welcome back to Wealth Dome, where I build and protect wealth.

After a strong year of performance, Meta Platforms (META) stock has pulled back sharply post-earnings — down over 20% from recent highs.

So the question is:

“Is this a buying opportunity, a warning signal, or just a healthy correction?”

Let’s break it all down 👇

💡 What Hit META Stock?

Two major things:

* Infrastructure spending surge — heavy Reality Labs CapEx.

* $50.9 billion tax charge, which distorted reported net income.

Despite these one-time factors, Meta’s core business remains a cash-printing machine — but the stock market has shifted its narrative from undervalued tech to AI growth story under scrutiny.

📊 Meta Q3 2025 Earnings Overview

MetricQ3 2025YoY ChangeRevenue$51.24B+26%Net Income$2.7B↓83% (due to tax charge)Adjusted Net Income$18.6B+19% (excluding tax)Free Cash Flow$10.6B+28%EPS (diluted)$7.25+6.2%

Key takeaway:

“The fundamentals are still strong — it’s the accounting that spooked investors.”

🧮 Valuation vs Peers

CompanyPE Ratio5-Year AvgCommentMeta (META)25.521.9Slightly above avgAlphabet (GOOGL)33.921More expensiveMastercard (MA)37.749ExpensiveNetflix (NFLX)5549OvervaluedAlibaba (BABA)2022Cheap alternative

Meta’s forward PE sits just above its historical average — not cheap, but still fair compared to peers, especially given AI-driven ad revenue acceleration.

🤖 Growth Drivers

* AI-Enhanced Ad Targeting – boosting impressions & price per ad.

* Reels Monetization – closing the gap with TikTok.

* Threads Growth – slow but steady user base expansion.

* Reality Labs (VR/AR) – CapEx-heavy but strategic for future platforms.

“Meta is not a social media company — it’s an ad company with AI scalability.”

📈 Ad Performance by Region (YoY Change)

RegionAd ImpressionsAvg. Price per AdU.S. & Canada↓1%Slight declineEurope+9%Up from 6%Asia-Pacific+23%Strongest regionRest of World+20%Strong rebound

The most important metric: Meta’s pricing power remains intact.

“When a company can raise ad prices — that’s real strength.”

⚙️ Technical Analysis: Oversold Setup

* RSI: 26.3 (massively oversold)

* MACD: Bearish crossover, but flattening

* Ichimoku Cloud: Below cloud (short-term bearish)

* Support: $500–$570 zone

* Resistance: $650–$680 zone

“A bounce toward the 200-day moving average is likely — the 500–570 zone could be a generational buy area.”

🧭 Buy, Hold, or Sell?

* Long-Term Investors: Hold and consider adding gradually near support.

* Swing Traders: Watch for RSI recovery and confirmation near 570.

* Short-Term Outlook: Oversold bounce likely, but volatility remains high.

“If you already own META, hold tight. If you’re looking to add, scale in between $500–$570.”

📊 Mentioned Stocks

META, GOOGL, MA, NFLX, BABA, KO, SPX, NDX

🔗 Relevant Links

* Meta Investor Relations

* Wealth Dome YouTube Channel

* Meta Q3 2025 Report

💬 Final Thoughts

Meta remains one of the most profitable AI-powered ad businesses in the world.Short-term pain from tax and CapEx spending is overshadowing a structurally strong cash engine.

“This is not a broken company — it’s a misunderstood one. Great companies go on sale only a few times per decade.”

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