Meta Stock Slips Below $600. Time to Buy?

Down astir 25% from an all-time precocious of astir $800, shares of Meta Platforms (NASDAQ: META) person been slammed. As of this writing, the banal has slipped beneath $600.

Yet the underlying concern is putting up phenomenal numbers. The institution not lone posted beardown fourth-quarter gross maturation but besides guided for awesome first-quarter results.

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Is this a buying opportunity? Maybe successful a precise tiny dose, but I wouldn't load up here.

Meta's caller Q4 fiscal results were impressive, showcasing a concern that continues to predominate the integer advertizing landscape.

The company's advertizing gross was $58.1 cardinal successful the 4th -- up 24% from the year-ago quarter. This advertizing spot crossed its halfway societal media platforms helped thrust a robust operating borderline of 41%, resulting successful astir $25 cardinal successful operating income for the period.

While this operating borderline is awesome successful a vacuum, it's notably down from 48% successful the year-ago 4th arsenic the company's costs and expenses surge amid a large concern cycle.

Highlighting Meta's caller deleveraging, the company's net per stock grew astatine a overmuch slower complaint than revenue, rising conscionable 11% twelvemonth implicit year.

And escaped currency travel accrued -- but besides grew much dilatory than revenue. The cardinal currency travel fig was astir $14.1 billion, up from astir $13.2 cardinal successful the year-ago quarter.

However, adjacent though costs are weighing connected Meta's net and escaped currency flow, the company's maturation illustration is really strengthening.

The midpoint of the company's first-quarter guidance scope calls for gross maturation of astir 30%.

"We are present seeing a large AI acceleration," explained CEO Mark Zuckerberg successful the company's fourth-quarter net call. "I expect 2026 to beryllium a twelvemonth wherever this question accelerates adjacent further connected respective fronts."

But securing artificial quality (AI)-driven maturation is costly.

"We're truly taking vantage of the existent concern spot to reinvest a batch of the gross into what we spot arsenic precise charismatic concern opportunities successful AI infrastructure and talent," explained Meta main fiscal serviceman Susan Li during the company's fourth-quarter net call.

In Q4, Meta's costs and expenses soared 40% twelvemonth implicit year, acold outpacing its 24% year-over-year maturation rate.