Summary

• Meta Platforms remains under pressure due to investor skepticism over rising AI-driven capex and potential equity dilution.
• META’s AI investments are already driving accelerating ad revenue growth, with Q1 FY26 revenue up 33% YoY and both ad impressions and pricing rising.
• Custom silicon deployment and new revenue streams like Business Agent, Meta One, and AI glasses offer significant long-term revenue and margin potential for the company.
• Trading at a forward P/E of 17x and with a 45%+ upside to consensus price targets, META presents a highly attractive risk-reward and I reiterate my buy rating.
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Introduction & Investment Thesis

Meta (META) continues to remain under pressure. It is currently the second-worst-performing hyperscaler on a YTD basis, as investors have not come to terms with the company’s capex plans.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of META, AMZN, AMD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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