Shares of Meta Platforms (NASDAQ: META) have fallen about 10% after a post-earnings surge. Revenue growth accelerated in Q4, with a 24% increase to $59.9 billion. However, heavy investments in AI led to a 40% rise in costs, impacting earnings growth. Operating income for 2026 is expected to be higher, reflecting a massive spending cycle on AI.

Investors considering Meta Platforms should be cautious due to the high-risk nature of the stock. Despite strong revenue growth and user metrics, heavy investments in AI are impacting earnings growth. With a price-to-earnings ratio of 28, the stock isn’t cheap. Investors should believe in the company’s AI bet and maintain a small position to mitigate risks.

Read more at Nasdaq: Down About 10% in Less Than a Week, Is Meta Platforms Stock a Buy?