In a recent post on key investment trends for the next decade, we highlighted the addictiveness and pervasiveness of social media as a critical long-term shift. Today, we're buying Meta Platforms 
META which we believe represents an exceptional investment opportunity.
The Financials
META's recent financial performance has been stellar. The company has maintained 20%+ year-over-year revenue growth for most of the last two years – impressive for a business generating nearly $50 billion quarterly. Even more compelling is bottom-line growth, with net income increasing approximately 50% year-over-year.
This growth is underpinned by META's robust margin profile, which has strengthened considerably since 2022. We attribute this performance to the company's powerful network effects across Facebook, Instagram, WhatsApp, and Messenger – platforms that effectively capture user attention and provide advertisers with compelling ROI.
The Valuation
What makes META particularly attractive right NOW is the valuation. We consider it the most competitively priced among the Magnificent 7 stocks. With the exception of Google, META offers the most favorable metrics on P/E, EV/EBITDA, and P/S ratios. When factoring in growth expectations, META's PEG ratio actually comes in below Google's.
Historically, META is trading at or below its long-term average multiples – with its P/E ratio currently in the lower standard deviation band.
Overall, we believe META's combination of robust growth, significant margins, and attractive multiple make it the most undervalued Magnificent 7 stock. In a choppy market, we rate the stock a "Strong Buy".
META which we believe represents an exceptional investment opportunity.The Financials
META's recent financial performance has been stellar. The company has maintained 20%+ year-over-year revenue growth for most of the last two years – impressive for a business generating nearly $50 billion quarterly. Even more compelling is bottom-line growth, with net income increasing approximately 50% year-over-year.
This growth is underpinned by META's robust margin profile, which has strengthened considerably since 2022. We attribute this performance to the company's powerful network effects across Facebook, Instagram, WhatsApp, and Messenger – platforms that effectively capture user attention and provide advertisers with compelling ROI.
The Valuation
What makes META particularly attractive right NOW is the valuation. We consider it the most competitively priced among the Magnificent 7 stocks. With the exception of Google, META offers the most favorable metrics on P/E, EV/EBITDA, and P/S ratios. When factoring in growth expectations, META's PEG ratio actually comes in below Google's.
Historically, META is trading at or below its long-term average multiples – with its P/E ratio currently in the lower standard deviation band.
Overall, we believe META's combination of robust growth, significant margins, and attractive multiple make it the most undervalued Magnificent 7 stock. In a choppy market, we rate the stock a "Strong Buy".
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.