TradingKey – Meta Platforms (META) shares have experienced a volatile decline since hitting a record high ($793) in August 2025. As of August 18 Eastern Time, based on a stock price of around $550, the drop during this period reached as much as roughly 30%.

By contrast, the Nasdaq 100 Index gained about 24% over the same period. Against the backdrop of the ongoing AI boom reshaping tech stock valuations, Meta bucked the trend with a notable decline, creating a stark divergence between its share price performance and the broader mega-cap tech sector. The main reason for this divergence is not that the market doubts Meta’s AI capabilities, but rather that it questions the monetization ability of its AI business model.

Unlike Google (GOOGL),…