Social media giant Meta Platforms reported strong third-quarter results, but stock sold off due to concerns over high capital expenditures. Despite the dip, Meta is now the cheapest of the “Magnificent Seven” stocks. The company raised its capex budget for this year and expects a big increase next year as well. Revenue surged 26% year over year to $51.24 billion in Q3, with advertising revenue climbing 26% to $50.1 billion. Meta’s AI efforts are driving ad growth and user engagement, leading to increased ad impressions and better targeting. Family daily active users increased by 8% to 3.54 billion. Looking ahead, Meta forecasts Q4 revenue between $56 billion to $59 billion. Despite spending concerns, Meta’s AI initiatives are driving revenue growth, and the company has strong cash flow to support investments. Meta stock has a forward P/E ratio of around 22 times 2026 estimates, making it the cheapest among the “Magnificent Seven” stocks. With growth opportunities and valuation in mind, buying on the dip could be a smart move. The Motley Fool Stock Advisor team did not include Meta Platforms in their list of top 10 stocks to buy now, but past recommendations have shown significant returns. Join Stock Advisor for access to their latest recommendations.

Read more at Nasdaq: Meta Platforms Shares Fall Despite Strong Revenue Growth. Is It Time to Buy the Stock on the Dip?