More than 40 Wall Street analysts label Meta Platforms (NASDAQ:META) stock as a buy. And despite the odd plunge (or crash) experienced in the past few years, the bulls have been absolutely spot-on to stick with the social-media juggernaut that’s now making a big splash in AI, with the potential to lead the way into the so-called metaverse with its cutting-edge AR glasses and VR headsets. Of all the Magnificent Seven stocks, I think Meta is the most exciting of the batch. CEO Mark Zuckerberg is a man on a mission, and he’s not afraid to spend money to make money.
Despite its meteoric 1,706% rise since its IPO a little over a decade ago, shares remain quite cheap. So, we’ve got earnings backing up the red-hot growth story. As Zuckerberg and company stay on the cutting edge of innovation, I think investors who’ve been sidelined may wish to give in and buy the stock, as a vast majority of analysts still recommend, as the stock blasts off past $700 per share.
Key Points
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Meta Platforms has a ton of bulls backing the name, even as it nears prior all-time highs.
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Zuckerberg’s Scale AI deal is another move that could push his firm forward in the AI race.
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Meta also seems to be leading the way in AI automation.
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Mark Zuckerberg is serious about making his mark in AI.
Meta is going big on AI with its LLaMA model. And, more recently, the tech titan also diversified its AI portfolio, scooping up Scale AI in a move that brings aboard some phenomenal talent to the social media behemoth. Of course, we’ll have to wait and see how Meta’s race towards superintelligence plays out. In any case, I think it no longer makes sense to view the company as one of the laggards or underdogs in AI. In fact, a pretty strong case could be made that Meta has taken the lead as it loosens up the purse strings for even more AI spend.
Perhaps Scale AI is just the first of many multi-billion-dollar AI acquisitions to be made as Zuckerberg looks to boost its capabilities to pull further ahead in the AI and workplace automation race.
With big money to spend and no shortage of Zuckerberg-driven ambition, I’m inclined to agree with the over 40 analysts who continue to stay upbeat on the firm as shares of Meta Platforms eye new all-time highs.
Of course, some investors may be put off by all the AI and metaverse spending. Such efforts entail great spending with somewhat little clarity (with regards to timing and magnitude) on the rewards to be had. In any case, I think putting one’s faith in Zuckerberg is a profitable move that’s worked time and time again, especially when the market punished the stock.
The AI automation revolution may be up ahead. Meta is helping drive it.
Looking further out, Zuckerberg seems to be doubling down on AI-driven automation, recently predicting that its AI models can, in due time, do the work of a mid-level engineer. If Zuck’s prediction holds true, Meta’s AI model could make the tens of billions of dollars seem like peanuts. As AI agents become all the rage, it will be interesting to see how Meta’s offering stacks up. For now, investors seeking to win big from the AI automation opportunity should look no further than the name, while it’s going for 27.1 times trailing price-to-earnings (P/E).
You’re getting a legendary founder CEO, an aggressive AI investment plan, an AI-enhanced earnings growth engine, and some really impressive new offerings on the horizon. Perhaps it’s not a mystery why more than 40 analysts rate META stock as a buy.
Are there going to be continued bumps in the road? Most likely. The stock is fresh off losing nearly a third of its value during the Liberation Day selling spree. In any case, Meta isn’t going to hit the pause button on its AI efforts just because Trump is getting more aggressive with tariffs. If anything, Meta is the ultimate tariff-resilient growth stock as its secular tailwinds continue to overpower near-term economic headwinds.
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