Meta Platforms reported strong Q4 results, with ad revenue climbing and exceeding analyst estimates. The stock surged after the report, with growth expected to accelerate in Q1. Despite the stock price jump, Meta Platforms remains attractively valued. The company plans to increase capital expenditures for 2026, focusing on AI efforts. Revenue for the quarter increased by 24%, with advertising revenue also rising by 24%. Meta’s core business is performing well, with a growth in users. The company guided for Q4 revenue growth between 26% to 34% year over year. Trading at a forward P/E ratio of around 24 times 2026 estimates, Meta Platforms is considered a stock to own for 2026.

In summary, Meta Platforms showed strong performance in Q4, with positive guidance for Q1. The company’s ad revenue and core business are growing, supported by AI efforts and ad monetization strategies. Despite concerns about capital expenditures, Meta Platforms remains attractively valued and is expected to continue its growth trajectory in 2026. Investors may consider Meta Platforms as a potential stock to own for the coming year.

Read more at Nasdaq: Meta Platform Shares Jump on Strong Outlook. Can the Stock’s Momentum Continue?