Meta Platforms (NASDAQ: META) saw a significant drop in stock price post third-quarter earnings, despite a 26% revenue increase to $51 billion. AI spending concerns led to a 10% share price decline. The company’s AI investments seem to be paying off, with a 14% increase in ad impressions and a 10% rise in average ad price.

Investors have been cautious due to Meta’s heavy capital expenditures on AI infrastructure, reminiscent of past unsuccessful ventures like the metaverse. However, the recent stock dip may be an overreaction, considering the company’s financial stability and the positive impact of AI on its ad business. Now could be a good time to invest in Meta Platforms.

While Meta’s core ad business remains strong, its AI investments have raised some concerns among investors. Despite this, the company’s financial strength and cash flow from ad revenue suggest that it can afford its AI spending. For those considering investing in Meta Platforms, now might be an opportune moment.

The Motley Fool Stock Advisor team has identified 10 top stocks for investors to consider, with Meta Platforms not making the cut. Historically, stocks recommended by Stock Advisor have produced significant returns, outperforming the market by a wide margin. Join Stock Advisor to access the latest top stock picks and potentially lucrative investment opportunities.

Read more at Nasdaq: Should You Buy Meta Stock While It’s Under $700?