Meta Platforms Inc. tumbled into negative territory for the year on Tuesday, becoming the last of the so-called Magnificent Seven stocks to lose its year-to-date gain.
The Facebook parent fell 3.7 per cent, extending a recent selloff that now has it down 0.5 per cent for 2025. The decline is especially notable as it comes in the wake of a historic rally that saw shares gain for an unprecedented 20 straight sessions. At its peak, the stock climbed nearly 26 per cent in 2025, but it has since erased all those gains.
Meta has lost a certain amount of flexibility given their investments into artificial intelligence, according to KeyBanc Capital Markets analyst Justin Patterson, who cut his price target on the stock to US$710 from $750, citing “greater macro uncertainty.”
“The challenge we see today is that the AI cycle is increasing fixed costs” at Meta, “which limits the ability to reduce expenses in a downturn,” Patterson wrote in a note, which also said Google parent Alphabet Inc., another Magnificent Seven company, faces similar headwinds.
Tech has come under broad-based pressure this year as the economic outlook has been roiled by the Trump administration’s policies on tariffs and questions about the direction of the AI trade. The Magnificent Seven stocks — Apple Inc., Microsoft Corp., Nvidia Corp., Amazon.com Inc., Tesla Inc., Alphabet and Meta — are seen as particular beneficiaries of AI.
The Bloomberg Magnificent 7 Total Return Index is down 16 per cent this year, and more than 20 per cent off its December peak. Among notable decliners, Tesla has slumped 44 per cent this year, while Alphabet and Apple are both down 15%, and Nvidia is off 14 per cent. The index fell 2.5 per cent on Tuesday.
Meanwhile, the broader Nasdaq 100 Index is down 7.3 per cent so far this year, recently falling into a correction. The tech-heavy index is currently more than 12 per cent below its own peak.
Big tech’s two-year outperformance has made it a favored place for investors to take profits amid the uncertainty.
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Ryan Vlastelica, Bloomberg News
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