Meta Stock Pulls Back 3% Amid AI and Metaverse Concerns: Here’s What Analysts Are Saying

Meta stock (NASDAQ: META) fell by approximately 3% on Monday and is trading at $767.10 as of the time of this report. The stock had been climbing last week, but Monday saw some investors pull back after a series of gains.

The shares opened at $775.09, briefly touched $775.81, then declined to as low as $756.56 before settling back to the $767.00 levels.

Volume was higher than usual, with over 10.3 million shares traded, as traders reacted to mixed signals about the company’s near-term outlook and broader market jitters.

Why did Meta stock tank today? The drop in Meta stock on Monday came after a strong run last week. The stock had risen about 23% from its recent lows, buoyed by earnings and excitement around artificial intelligence and virtual reality.

The Q2 2025 report showed revenue of $47.52 billion, a 22% increase year-over-year that beat expectations, but that didn’t stop some investors from pausing.

Some analysts say concerns still remain. Rules and regulations are tightening in various countries, advertising revenue is not as certain as it once was, and the metaverse is becoming more competitive.

People are also watching to see if the new AI products will start bringing in truly meaningful revenue and whether Meta can keep up with the pace of innovation.

What are analysts saying? Analysts point to broader economic factors behind Meta’s pullback. Global market fluctuations and tightening monetary policies have hit tech stocks harder than most, leading to some profit-taking after recent gains.

As a major component of large tech indices, Meta tends to feel these shifts more sharply.

Financial experts suggest that while Meta’s fundamentals are still solid, the stock’s current price may already reflect much of its expected growth.

This could help explain why buying activity slowed on Monday. Investor sentiment is also being shaped by Meta’s push into augmented and virtual reality, including its new smart glasses and VR headsets.

These products could drive long-term growth, but early adoption rates and the associated costs raise questions about how profitable they will be in the near term.

Despite Monday’s dip, Meta stock is still well above where it was earlier this year and is holding up relatively well compared to many of its tech peers.

The company’s efforts to diversify beyond advertising into areas like commerce and subscriptions continue to receive positive attention.

Looking ahead, investors will be closely watching upcoming product launches and quarterly reports for signs of growth and how well Meta is executing its plans.

Volatility is likely to continue as the market balances the company’s innovation potential against short-term economic risks.

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