Meta Platforms CEO focuses on efficiency as company's growth outlook remains strong, attractive valuation

From Yahoo Finance: 2025-05-06 12:48:00

Meta Platforms CEO Mark Zuckerberg focuses on efficiency as the company’s growth outlook remains strong, according to Gilman Hill Asset Management CEO Jenny Van Leeuwen Harrington. Harrington finds Meta Platforms’ valuation attractive, calling it one of the most compelling Mag 7 stocks.

Despite Meta Platforms’ stock rally, Zuckerberg has kept costs in check. The tech giant is expected to increase earnings at a rate of 15%-20% annually, trading at a low price-to-earnings ratio of about 22 times. Harrington highlights Meta’s high free cash flow generation.

Meta Platforms’ operating margin rose to 41% last quarter from 38% a year earlier. In the last month, the stock gained 16%, but fell 14% over the last three months. While acknowledging Meta’s potential, Harrington sees greater promise in AI stocks for higher returns within a shorter timeframe.

For investors interested in AI stocks with potential, there is a recommendation to check out a report on the cheapest AI stock that has shown promising growth since the beginning of 2025. The article was originally published on Insider Monkey.

Read more: META Stock Is Efficient and Is “One of the Most Compelling Mag 7 Stocks,” Prominent Investor Says