What happened

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.

So what

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.

A group of young people looking at their smartphones

Image source: Getty Images.

Now what

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.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.