Going Into Earnings, Is Meta Stock a Buy, a Sell, or Fairly Valued?

"We think this will be yet another impressive quarter for advertising, with growth near 30%. According to industry researchers, 2026 may be the first year when Meta's ad sales exceed those of Alphabet on a net basis."

"We think investors should look for a clear articulation of how AI benefits the broader advertising business, whether through ad targeting, content recommendations, and/or providing tools for creatives."

"We see the firm as competitively well-positioned, especially as it continues to scale its AI investments to support its ads business."

"With its 4-star rating, we believe Meta's stock is moderately undervalued compared with our long-term fair value estimate of $850 per share."

Meta Platforms is set to release its first-quarter 2026 earnings report on April 29. Analysts predict a 30% growth in advertising revenue. 2026 may mark the year when Meta's ad sales surpass those of Alphabet. Investors should look for insights on AI's impact on advertising, including ad targeting and content recommendations. Commentary on Muse Spark usage and custom silicon plans is also anticipated. Meta's stock is viewed as undervalued, with a long-term fair value estimate of $850 per share and a projected 18% sales growth over the next five years.

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