Meta shares are down 9% this week. Here's why Mike Khouw is buying now

Meta shares have experienced a significant decline, dropping 9% this week, which is their worst performance in four years. This sharp decline may have raised concerns among investors about the company's prospects. However, Mike Khouw, a well-known market strategist, is taking a contrarian view and buying the stock.

The fact that Khouw is buying Meta shares now suggests that he sees value in the stock at its current price. As a market strategist, Khouw likely has a deep understanding of the company's fundamentals and the factors that drive its stock price. His decision to buy may be based on his analysis of Meta's long-term prospects, which may not have changed despite the short-term decline in the stock price. It's also possible that Khouw believes the sell-off is overdone and that the stock is due for a rebound.

For traders, the key question is whether Khouw's bet will pay off. To watch next is Meta's upcoming earnings report, which could provide insight into the company's financial health and growth prospects. Additionally, traders should keep an eye on the broader market trends and sentiment, as a shift in investor attitudes could impact Meta's stock price. If Khouw's analysis proves correct, and Meta's stock does rebound, it could be a sign that the worst is over for the company, and that it's poised for a comeback.

Originally reported by cnbc.com. Trade-News adds analysis for finance & markets readers.