Meta Platforms (META) stock has been down recently due to several key factors:

• Meta announced a pause on AI-related hiring after a significant spending spree on AI talent. This hiring freeze, reported in August 2025, raised concerns among investors about the near-term execution of Meta's AI initiatives despite the company's long-term commitment to AI development. The company is also restructuring its AI division into four separate teams, which has created some uncertainty.

• There are worries about increasing expenses and labor costs related to the competition for AI dominance. Analysts note that these costs, including stock-based compensation, could dilute investor returns.

• Despite AI-driven optimism earlier in the year, a recent slowdown in digital advertising growth and the need for Meta to show tangible results from its large AI investments pose challenges for stock appreciation. Meta anticipates investing $60-65 billion in AI infrastructure in 2025, which adds to costs.

• Insider trading data shows significant selling activity by top Meta executives over the past six months, which might influence investor sentiment negatively.

• Competition in the tech and social media space, including new AI technologies emerging from rivals like OpenAI, is creating pressure on Meta's dominance and market perception.

While the stock remains up over 25% year-to-date and analysts maintain buy ratings with raised price targets, these factors contribute to the recent dips and investor caution around META stock.

In summary, Meta's stock downtrend is mainly due to AI hiring pauses, restructuring, rising costs, competitive pressures, and some insider sell-off, despite strong longer-term AI potential and revenue growth.