Facebook (NASDAQ:) just nosedived 4% on Wednesday, bringing shares of the social-media giant into correction territory. Over the last year, it has been a volatile year for shareholders of FB. Facebook warned that Apple’s privacy update (NASDAQ:) would have a negative impact on ad growth Wednesday, which led to selling pressure.

Many Apple users tend to choose not to allow ad tracking when offered the chance. Investors may not have realized the extent of the effect of the iOS update. However, FB stock likely had some of its impact already. The name remains my favorite FAANG stock and it is one of the best, despite the recent tumble.

Facebook is likely to keep it simple at the moment, intending to lower its advertising revenue by about 15%. Management did acknowledge that this range could be wide, adding uncertainty to the impact of Apple’s update. Investors hate uncertainty more than any other thing, so the negative stock reaction was a result. (See Facebook stock charts on TipRanks)

Facebook’s Brutal Wave of Bad News

With Facebook’s Chief Technology Officer (CTO) announcing his intention to step down in 2022, the stage looks to be set for another Facebook pullback, which could stretch beyond just a correction.

It’s hard to support FB stock when you consider the Wall Street Journal’s recent report on Instagram’s possible mental health effects on teenage girls. A worsening sell-off is possible, given all the market correction calls that strategists are making these days.

Despite all the bad headlines, I believe the stock’s long-term fundamentals remain intact. Facebook stock is facing a lot of negativity right now. It’s not hard to be critical. It’s still a solid stock with strong fundamentals. The valuation is very affordable. Long-term investors who are willing to take a risk after a 10% decline in price could be wise to act as a contrarian.

Wall Street’s Take

According to TipRanks’ consensus analyst rating, FB stock comes in as a Strong Buy. Twenty-five unanimous Buy recommendations are found out of thirty analyst ratings.

As for price targets, the average Facebook price target is $421.97, implying an upside of 23%. Price targets for analysts can range anywhere from $300.00 per Share to $500.00 Per Share.

The Bottom Line on FB Stock

Facebook was already one of the cheapest FAANG stocks before Wednesday’s plunge.

In a still volatile market, this stock is now cheaper. If selling pressure increases, it will be difficult for value-conscious people to remain on the sidelines.

Facebook will probably do all it can to enhance its image and transition to an era with more competition in targeted advertising, possibly driving up prices. Facebook is the company that adapts and can rise to any challenge. Investors should not bet against Facebook as the company is likely to rebound from setbacks.

Disclosure: Joey Frenette was a shareholder in Apple shares at the time this article was published.

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