Meta Platforms’ META shares have dropped 17.9% in the past month, underperforming peers like Amazon, Alphabet, and Snap. Meta Platforms, Alphabet, and Amazon are expected to absorb over 50% of global ad spending this year and 56.2% by 2026. Shares of Alphabet, Amazon, and Snap have seen appreciation, while the broader sector dropped 0.6%.

The decline in META’s share price is due to increased capital expenditure, now estimated between $70-72 billion. Meta Platforms, Alphabet, Amazon, and Microsoft are expected to spend $380 billion on AI infrastructure in 2025. META’s focus on integrating AI into its platforms is driving user engagement and boosting ad revenues.

META expects fourth-quarter total revenues to range between $56-59 billion. The Zacks Consensus Estimate for fourth-quarter 2025 earnings is $8.16 per share, up 0.7% over the past 30 days. META shares trade at a premium compared to industry peers, with a Value Score of C and a forward 12-month P/S ratio of 6.63X.

Meta Platforms’ heavy investment in AI infrastructure and use of AI across its platforms are expected to drive user engagement and revenue growth. However, stiff competition in the ad market and a stretched valuation pose challenges. META currently has a Zacks Rank #3 (Hold), suggesting investors wait for a more favorable entry point to accumulate the stock.

A company specializing in semiconductor products is positioned for growth in AI, Machine Learning, and IoT markets. With strong earnings growth and an expanding customer base, it is set to benefit from the projected growth in global semiconductor manufacturing. Investors can explore this under-the-radar stock now for potential opportunities.

Read more at Nasdaq: Meta Platforms Drops 18% in a Month: Buy, Sell or Hold the Stock?