Meta Platforms, Inc. (META): A Bull Case Theory

We came across a bullish thesis on Meta Platforms, Inc. (META) on Value Investing Subreddit Page by CompanyCharts. In this article, we will summarize the bulls’ thesis on META. Meta Platforms, Inc. (META)’s share was trading at $543.57 as of April 11^th. META’s trailing and forward P/E were 22.78 and 21.37 respectively according to Yahoo Finance.

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Meta Platforms (META) presents a compelling investment case, underpinned by a rock-solid balance sheet with $276B in assets, $28.8B in debt, and $182B in equity. With a market cap of $1.38T, the company maintains a healthy financial foundation while navigating modest dilution risks. Although 483 million shares are reserved for employee compensation—representing 19% of the float—this factor is already reflected in valuation metrics like diluted EPS, reducing the surprise element for investors. META’s valuation is attractive relative to its growth, with a P/E of 22.84 against a staggering 60.54% YoY EPS growth and a five-year CAGR of 30%. Other multiples, including P/S and P/FCF, suggest the stock is fairly priced to undervalued across most metrics, with PEG-like ratios largely under 1, reinforcing the growth thesis. Despite facing a wave of litigation—from GDPR fines and FTC scrutiny to global lawsuits tied to AI, data, and advertising—none appear existential, and many are under appeal or in early stages. Looking ahead, the company’s expansion into AI, monetization of its app ecosystem, and strategic push into the Metaverse position it for continued dominance. Given its mix of high growth, solid fundamentals, and fair-to-cheap valuation, META still offers room for upside despite legal overhangs.

Meta Platforms, Inc. (META) is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 262 hedge fund portfolios held META at the end of the fourth quarter which was 235 in the previous quarter. While we acknowledge the risk and potential of META as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than META but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.