Shares of Facebook (NASDAQ:FB) took a hit on Monday, falling 4.5% by the time the market closed. Shares were down along with the broader market. The Nasdaq Composite slid 3.5% as investors were spooked by the spread of the coronavirus to Italy and South Korea.
Investors should put the stock's decline into context. Shares are still up 23% over the past 12 months even after today's drop. Some investors, therefore, may have simply decided to take some profits on the tech stock amid these coronavirus fears.
Investors should remain focused on the long term, valuing stocks based on fundamentals. It's possible that the coronavirus could hurt advertising spend on Facebook's platform. Investors, therefore, should keep an eye out for any commentary from management on whether or not the virus' outbreak is having a material impact on the social network.