Is Meta Stock a Buy After Its AI Spending Spree?

• Meta Platforms has invested heavy successful AI and plans to ramp up spending adjacent much successful 2026.

• These AI investments person drawn comparisons to Meta's costly metaverse venture.

• The cardinal quality is that Meta's AI spending is already driving maturation for its advertisement business.

• 10 stocks we similar amended than Meta Platforms ›

Meta Platforms (NASDAQ: META) plummeted aft its third-quarter net report, mostly owed to the company's important artificial quality (AI) spending -- and plans to walk adjacent much successful 2026. From Oct. 29 to Nov. 20, Meta's stock terms fell 22%, from $752 to little than $600.

Investors are acrophobic that AI volition go the adjacent metaverse, which has outgo Meta implicit $70 cardinal since 2021. However, there's a important constituent that galore are overlooking.

The metaverse has been a wealth pit truthful far, and there's a bully accidental it volition ne'er wage disconnected successful a meaningful way. AI, connected the different hand, is already providing morganatic worth for Meta. The societal media institution has integrated AI tools into its advertisement products, enabling companies to optimize advertisement designs, acceptable up automated rules that intermission oregon boost ads based connected performance, and person AI-powered advertisement insights.

These tools person contributed to amended advertisement engagement, higher prices, and much wealth for Meta. Ad impressions were up 14% twelvemonth implicit twelvemonth successful the 3rd 4th of 2025, and the mean terms per advertisement accrued by 10% twelvemonth implicit year. Revenue for the archetypal 3 quarters of the twelvemonth was $42.3 cardinal (a 16% year-over-year increase), $47.5 cardinal (a 22% increase), and $51.2 cardinal (a 26% increase).

With $44.8 cardinal successful trailing escaped currency travel (FCF), Meta tin spend to marque important investments successful AI. While the metaverse flashbacks are understandable, AI spending could beryllium a winning determination for Meta. I inactive see the institution a buy, and I've been picking up shares during the dip.

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