Meta’s (META) Valuation Is “Compelling,” Analyst Suggests

Meta’s (META) valuation is “compelling,” and it is “more immune to tariffs” than many stocks, suggested Schwab Network Correspondent George Tsilis recently.

An economist who worked for CME Group in the past, Tsilis was also a Financial Advisor for BMO, a Canadian bank.

Later in the same segment on Schwab, another one of the network’s correspondents, Dan Deming, proposed an options trade involving META.

Meta App 3D sign

Meta’s Valuation Is “Compelling,” Tsilis Suggests

While discussing META stock, Tsilis stated that there are “a lot of compelling valuations” among U.S. stocks at this point. He also noted that investment bank Cowen had recently lowered its price target on the name to $725 from $785. The stock closed at $504.73 on Friday.

Finally, Tsilis pointed out that the shares were changing hands at just 18 times analysts’ average earnings per share estimate for 2026.

An Options Trade Involving META

Dening suggested buying one May 16 put with a $500 strike price on META and selling two May 16 puts with a $450 strike price.

The net premium on these options would be about $0, he said. According to the correspondent, traders will realize significant profits if Meta holds above $450. And if it falls below $400, investors should be content with acquiring the shares at such low levels, the analyst believes.

The breakeven point for the trade is $400, Dening added.

While we acknowledge the potential of META, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.

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