Meta Platforms (META) shares have dropped 13.9% year-to-date (YTD), underperforming the broader Zacks Computer & Technology sector, which has seen a 45.7% rise. While META’s valuation stands at a forward price/sales ratio of 5.5X, surpassing the Zacks Internet Software industry’s 3.74X, it lags behind Alphabet (GOOGL) at 9.77X and Microsoft (MSFT) at 7.7X.
Looking ahead, Meta expects second-quarter 2026 revenues between $58 billion and $61 billion, reflecting a projected 26.6% increase year-over-year. However, consensus estimates for earnings show a slight decline of 0.42% to $7.11 per share. High spending on AI infrastructure, anticipated to total between $125 billion and $145 billion by 2026, raises concerns over future earnings and free cash flow, contributing to investor skepticism.
As of now, META is ranked #3 (Hold) by Zacks, suggesting investors may want to await a more favorable market entry point before accumulating shares.
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