From Nasdaq, Inc.: 2024-05-02 05:26:00

Earnings season for the recent quarter ended March 31 is in full swing, with Meta Platforms (NASDAQ: META) stock down 12% despite beating expectations. The company revealed plans to increase spending on growth initiatives like AI, which may impact short-term earnings. However, analysts remain bullish on Meta’s stock as it becomes the cheapest name in the trillion-dollar club.

Meta is leveraging AI to enhance engagement, with over 3.2 billion daily users on its platforms. AI algorithms are recommending more content to boost user interaction, leading to increased engagement on Facebook and Instagram. Meta AI, a chatbot powered by Llama LLMs, aims to keep users on its platforms and drive advertising revenue.

In Q1, Meta’s revenue rose 27% year-over-year to $36.4 billion, with net income up 117%. Despite a spike in capital expenditures for AI development, Wall Street remains optimistic about Meta’s long-term potential. With a P/E ratio of just 24.8, Meta is the cheapest stock among trillion-dollar companies, making it an attractive investment opportunity according to analysts.

Wall Street is bullish on Meta stock, with 49 out of 66 analysts giving it a highest-possible buy rating. Meta’s strong track record of monetizing new features and the potential upside from Meta AI contribute to the positive sentiment. Investors willing to hold for the long term could capitalize on the current valuation and growth prospects of Meta Platforms.

Consider investing in Meta Platforms for the long term as analysts are bullish on its potential. While not included in the top 10 stocks to buy right now, Meta’s current valuation and growth make it an appealing choice. The Motley Fool Stock Advisor service offers guidance and new stock picks every month, providing investors with a blueprint for success.



Read more at Nasdaq, Inc.: Should You Buy the Cheapest Trillion-Dollar Stock Hand Over Fist? Wall Street Says Yes