Meta Platforms (NASDAQ: META) fell beneath $600 final Friday, marking a major decline for an organization buying and selling close to $800 simply six months in the past. Part of that’s doubtless because of the macroeconomic atmosphere, however Meta has additionally anxious Wall Street with its synthetic intelligence (AI) spending.
The considerations are comprehensible, however zooming out, there’s nonetheless so much to love about Meta as an funding, particularly on the present share worth.
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The greatest issue weighing down Meta currently is its $115 billion to $135 billion in projected capital expenditures (capex) for 2026. The social media company spent $72 billion in 2025, so prices will considerably improve this yr.
Even with its capex spending final yr, Meta nonetheless reported $43.6 billion in free money circulate, in massive half because of the efficiency features it is receiving from AI. Meta’s AI instruments, together with its Andromeda advert advice system and Llama 4 multimodal mannequin, helped the corporate develop advert impressions by 12% and common worth per advert by 9% in 2025.
Meta CFO Susan Li additionally stated on the This autumn 2025 earnings name that 2026 working revenue is anticipated to exceed that of 2025. Meta is worthwhile sufficient that it could fund its AI buildout whereas nonetheless rising its revenue.
Meta trades at 20 occasions ahead earnings as of March 20, making it, by that metric, the most affordable member of the “Magnificent Seven,” a gaggle of seven of the most important technology companies. Considering the power of Meta’s enterprise, together with a file $201 billion in income in 2025, the present share worth appears like an ideal deal.
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