Meta stock pulls back 3% amid AI, Metaverse concerns: here's what analysts say

Meta stock (NASDAQ: META) fell about 3% on Monday, trading at $767.10 at press time. The stock had been climbing last week, but Monday saw some investors pull back after a string of gains.

Shares opened at $775.09 and briefly touched $775.81, then drifted down to $756.56 before climbing back to $767.00 levels.

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

Why Meta stock tank today?

Meta stock drop on Monday came after a strong run last week. The stock had climbed nearly 23% from its lows, lifted by earnings and the excitement around AI and virtual reality.

The Q2 2025 report showed revenue of $47.52 billion, up 22% from last year, beating expectations, though that didn’t stop some investors from pausing.

Some analysts say there are still concerns. Rules and regulations are tightening in various countries, advertising revenue isn’t as certain as before, and the metaverse is getting more competitive.

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

What analysts say?

The analysts point to broader economic factors behind Meta’s pullback. Global market swings and tightening monetary policies have hit tech stocks harder than most, prompting some profit-taking after recent gains.

Being a big part of major tech indexes, Meta tends to feel these shifts more sharply.

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

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

These products could drive growth over the long term, but early adoption and the costs involved are raising questions about how profitable they will be in the near term.

Even with Monday’s drop, Meta stock is still well above where it was earlier this year and holds up relatively well compared with many of its tech peers.

The company’s push to diversify beyond advertising, into areas like commerce and subscriptions, continues to get positive attention.

Looking forward, investors will be watching closely for 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 with short-term economic risks.