This "Magnificent Seven" Stock Is the Cheapest of Them All. Is It a Buy Right Now?
Meta Platforms' stock is trading at 19.8 times its projected earnings, the lowest valuation among the 'Magnificent Seven' tech stocks. The company's advertising revenue rose 33% year-over-year in Q1, driven by a 19% increase in ad impressions and a 12% rise in average ad price.
Meta Platforms is the cheapest of the 'Magnificent Seven' tech stocks, trading at 19.8 times its projected earnings. The company's Q1 advertising revenue was $55 billion, up 33% year-over-year, driven by a 19% increase in ad impressions and a 12% rise in average ad price. Meta is investing heavily in artificial intelligence, having released its newest AI model, Muse Spark, and partnering with Broadcom to develop custom AI chips. The company expects to spend $125-145 billion on capital expenditures this year, mainly on data centers and AI infrastructure. Meta's advertising business remains strong, accounting for nearly 98% of its total revenue. The company's goal is to become vertically integrated in AI as quickly as possible.
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