"After pouring so much capital into artificial intelligence (AI) as well as its Reality Labs metaverse business, Meta Platforms has drawn scrutiny from its critics. Indeed, some skeptics might claim that Meta Platforms hasn't earned its title as a Magnificent Seven member. Yet, there are two sides to every debate in the financial markets. After reviewing the relevant facts, you should be convinced that META stock is actually a "Mag-7" asset worth owning this year."
"Over the past year, META stock has only gained a meager 3.44%. That's nothing to write home about, and it's far from magnificent even though Meta Platforms is supposed to be a Magnificent Seven company. However, perhaps we can look at this from a different perspective. During the past five years, Meta Platforms stock has risen 167%, which isn't too shabby at all."
Meta Platforms has invested heavily in artificial intelligence and its Reality Labs metaverse business, prompting scrutiny and skepticism about its Magnificent Seven status. The stock returned only 3.44% over the past year but gained 167% over five years, indicating substantial longer-term appreciation. A trailing 12-month price-to-earnings ratio near 30x positions valuation as neither cheap nor extremely rich for a top tech name. The recent one-year digestion likely followed powerful previous gains and may reduce concern over relentless upside. Strong AI commitment and long-term growth prospects support the view that Meta remains an attractive Magnificent Seven-level investment in 2026.
Read at 24/7 Wall St.
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