Why Meta Platforms Stock Was Pulling Back Today

Shares of Meta Platforms (NASDAQ: META) were pulling back today on a combination of a broad-based sell-off related to the upcoming "Liberation Day" round of tariffs, and as one analyst lowered its price target on the stock, weighing on the shifting macroeconomic climate.

As of 10:11 a.m. ET, the stock was down 2% on the news, after opening down 4.1%.

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Meta Platforms sinks on tariff concerns

As one of the most valuable companies in the world and a global leader in digital advertising, Meta Platforms has significant exposure to the health of the global economy. Advertising is one of the first expenses businesses tend to cut back on when they sense that a recession is coming, and Meta has felt that impact, including in 2022, when its revenue briefly declined.

Additionally, Jefferies lowered its price target on Meta from $810 to $725, though it maintained a buy rating on the stock. The research firm acknowledged the multiple compression across the industry, as well as signs that the macro environment is softening.

Jefferies also said it wasn't lowering its estimates on the stock for now.

What's next for Meta Platforms?

Meta is coming off a stellar 2024 as the stock soared on strong growth in the business and improving profitability. Additionally, CEO Mark Zuckerberg had said that its Meta AI chatbot was on track to be the most-used chatbot in the world by the end of 2024, showing its artificial intelligence (AI) strategy seems to be paying off.

An economic downturn or a recession would certainly be a setback for Meta's business, but the company is resilient enough to bounce back. Its price-to-earnings (P/E) ratio has now fallen to 23.5, making it look like a good value, given Meta's recent growth.

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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jeremy Bowman has positions in Meta Platforms. The Motley Fool has positions in and recommends Jefferies Financial Group and Meta Platforms. The Motley Fool has a disclosure policy.