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Meta Platforms: AI Splurge Spooks Investors, Why It's A Buy-The-Dip Opportunity
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Meta Platforms: AI Splurge Spooks Investors, Why It's A Buy-The-Dip Opportunity

Seeking Alpha·Mike Zaccardi, CFA, CMT·about 1 month ago
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Home Earnings Analysis Communication Services Summary Meta Platforms (META) remains a buy as valuation is attractive despite a sharp post-earnings decline and ambitious capex plans. Q1 results featured a strong revenue beat and EPS outperformance, but adjusted net income was $18.7B after excluding a one-time $8B tax benefit. META raised its capex outlook to $125–$145B for 2026, shifting the narrative to a 'show-me' AI story with investor focus on AI investment payoffs. My price target rises to $672, based on $32 normalized non-GAAP EPS and a 21x multiple, with technical support seen near $575. Getty Images Meta Platforms ( META ) was the notable laggard among the AI four horsemen to report quarterly results on Wednesday evening, April 29.…

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