Key Points
Meta Platforms (NASDAQ: META) is currently trading at a forward P/E ratio of 20x, which is lower than its peers in the “Magnificent Seven” tech stocks that typically trade at least 28x earnings estimates. As of now, the company is at its lowest valuation in a year.
Meta, known for its popular platforms like Facebook and Instagram—with around 3.5 billion daily users—has significantly increased its investments in artificial intelligence (AI) to streamline its advertising process, aiming for full automation by the end of 2026. The company recently boosted its AI-focused workforce and established the Meta Superintelligence Labs.
Concerns about Meta’s aggressive infrastructure buildout affecting stock performance have been addressed by CEO Mark Zuckerberg, noting sustained demand for compute power. Analysts suggest that this, combined with AI advancements, positions Meta for potential revenue growth in the coming years.
