Meta Platforms (NASDAQ: META) fell beneath $600 past Friday, marking a important diminution for a institution trading adjacent $800 conscionable six months ago. Part of that is apt owed to the macroeconomic environment, but Meta has besides disquieted Wall Street with its artificial quality (AI) spending.
The concerns are understandable, but zooming out, there's inactive a batch to similar astir Meta arsenic an investment, particularly astatine the existent stock price.
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The biggest origin weighing down Meta lately is its $115 cardinal to $135 cardinal successful projected superior expenditures (capex) for 2026. The societal media institution spent $72 cardinal successful 2025, truthful costs volition importantly summation this year.
Even with its capex spending past year, Meta inactive reported $43.6 cardinal successful escaped currency flow, successful ample portion owed to the show gains it's receiving from AI. Meta's AI tools, including its Andromeda advertisement proposal strategy and Llama 4 multimodal model, helped the institution turn advertisement impressions by 12% and mean terms per advertisement by 9% successful 2025.
Meta CFO Susan Li besides said connected the Q4 2025 net telephone that 2026 operating income is expected to transcend that of 2025. Meta is profitable capable that it tin money its AI buildout portion inactive increasing its income.
Meta trades astatine 20 times guardant net arsenic of March 20, making it, by that metric, the cheapest subordinate of the "Magnificent Seven," a radical of 7 of the largest exertion companies. Considering the spot of Meta's business, including a grounds $201 cardinal successful gross successful 2025, the existent stock terms looks similar a large deal.
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