Down 11% Over the Past 5 Days, Should You Buy the Dip in META Stock?

Shares of Meta Platforms (WPM) have come under sharp pressure, falling almost 12% over the past five trading sessions. The abrupt pullback is being driven by growing investor concerns around Meta’s escalating artificial intelligence (AI) spending. While these investments are aimed at strengthening Meta’s long-term positioning in generative AI and recommendations, they are also raising near-term fears of margin compression and uncertain return timelines.

Plus, a rising legal overhang tied to social media addiction lawsuits is beginning to weigh on the stock. Recent trial developments have increased the risk of broader liability exposure, as courts scrutinize the impact of Meta’s platforms on younger users, potentially opening the door to costly settlements and prolonged regulatory pressure.