"Over the past year, Meta Platforms ( META) has significantly underperformed most of its Magnificent Seven counterparts, posting a meager 5% return while Alphabet ( GOOG, GOOGL) surged 66% and even Apple ( AAPL) managed a 12% gain. Investor skepticism has largely stemmed from Meta's aggressive shift toward artificial intelligence, which has necessitated hefty capital outlays and - for the first time in years - taking on substantial debt to fund expansive data centers and AI infrastructure."
"Amid a broader market rebound, Meta's shares jumped more than 5% yesterday, fueled by Jefferies analyst Brent Thill maintaining his strong buy recommendation and setting a price target implying roughly 45% upside from recent levels. He emphasized Meta's position as the most affordably priced among the elite tech group, trading at under 29 times trailing earnings - a discount that stands out against peers like Alphabet, which has enjoyed far stronger gains over the last 12 months."
Meta Platforms returned about 5% over the past year, lagging peers such as Alphabet (66%) and Apple (12%). The company pursued an aggressive shift into artificial intelligence, prompting large capital expenditures and substantial debt to build data centers and AI infrastructure. Ongoing losses in Reality Labs have raised profitability concerns. Shares recently rose over 5% after a strong-buy endorsement and a price target implying roughly 45% upside. Meta trades under 29 times trailing earnings. Core digital advertising accelerated 26% in the latest period. WhatsApp is increasing commercialization and Threads reached 400 million monthly users, with global ad expansion expected to boost monetization.
Read at TalkMarkets
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