"Magnificent Seven and their buddies"
"People were paying 30 times earnings high for the stock as recently as a year ago. Now, they're paying just 22 times earnings. Whoa!"
"It's a sign that Meta has lost its way. There, I said it."
Meta's valuation multiple has fallen sharply, reflecting reduced market confidence in the company's growth prospects. Price-to-earnings moved from roughly 30x a year ago to about 22x today. Heavy AI-related spending and unclear AI monetization plans are increasing investor unease. Advertising downturn risk could slow revenue growth and limit funds available to build AI infrastructure. Meta moved into net debt with $44.5 billion in cash versus over $51 billion in debt, down from $77.8 billion cash and $49 billion debt in Q4 2024. A high-profile investor nevertheless maintains a bullish stance and ownership.
Read at 24/7 Wall St.
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