Harvard University Likes Meta (META) Stock Despite AI CapEx Fears

Harvard's Stake: $111,310,180

Meta Platforms (NASDAQ:META) is down astir 12% truthful acold this year, with CapEx-related fears being the superior resistance connected the banal contempt Mark Zuckerberg's assurances that these investments volition wage disconnected successful the future. But capitalist concerns are not unfounded.

Meta Platforms (NASDAQ:META) carries a 35% CapEx-to-sales ratio, acold supra peers similar Google (26%), Pinterest (0.95%), and Reddit (0.28%), yet lacks a wide way to AI monetization. Unlike Google, Microsoft, oregon Amazon, Meta Platforms (NASDAQ:META) has nary unreality concern to merchantability compute to enterprises — its GPU purchases and information halfway buildouts are solely for interior use, chiefly to optimize its advertizing concern done amended contented recommendations. Some analysts judge that a simplification successful CapEx spending, combined with a further diminution successful the banal terms that pushes multiples beneath assemblage medians, could yet marque the valuation charismatic capable to crook bullish.

Impax US Sustainable Economy Fund stated the pursuing regarding Meta Platforms, Inc. (NASDAQ:META) successful its Q1 2026 capitalist letter:

"Meta Platforms, Inc. (NASDAQ:META) (Communication Services, Interactive Media & Services) is not held successful the portfolio owed to its unfavorable Corporate Resilience profile, including below-average scores connected societal hazard absorption and governance. The banal declined materially during the quarter, reflecting broader de-rating of large-cap exertion names and concerns astir slowing integer advertizing maturation successful a weaker user environment. The portfolio's zero weight, fixed Meta's meaningful benchmark position, made this the second-largest affirmative progressive contributor (Click Here to Read the Letter successful Detail)."

Photo by austin-distel connected Unsplash

While we admit the imaginable of META arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

READ NEXT: 33 Stocks That Should Double successful 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. 

Disclosure: None. Follow Insider Monkey connected Google News.