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Shares of Meta Platforms (NASDAQ: META) fell over 19% from its Q3 earnings report on October 29, with a decline of more than 11% following the release. As of November 13, shares are trading around $610, reflecting significant market concerns regarding the sustainability of advertising growth and elevated AI-related expenses.
Meta’s CapEx forecast anticipates spending exceeding $100 billion in 2026, up from an estimated $71 billion for 2025. Despite these costs, advertising revenue growth has accelerated, with user engagement on Facebook and Instagram increasing. Analysts have a consensus target price of nearly $828, suggesting a potential upside of around 36% from current levels.
Meta’s forward price-to-earnings (P/E) multiple is just over 20x, the lowest among the Magnificent Seven tech stocks, suggesting a favorable risk-reward profile for investors given its historical cash flow growth of nearly 25% annually over the past decade.
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