Meta Platforms’ (META) Earnings Multiple Reflects Slower Growth Expectations

In its first-quarter 2026 capitalist letter, Wedgewood Partners highlighted Meta Platforms, Inc. (NASDAQ:META). Meta Platforms, Inc. (NASDAQ:META), the genitor institution of ascendant societal media platforms, is simply a multinational exertion institution that develops products to link people. On April 28, 2026, Meta Platforms, Inc. (NASDAQ:META) closed astatine $671.34 per share. One-month instrumentality of Meta Platforms, Inc. (NASDAQ:META) was 15.90%, and its shares gained 22.28% implicit the past 52 weeks. Meta Platforms, Inc. (NASDAQ:META) has a marketplace capitalization of $1.70 trillion.

Wedgewood Partners stated the pursuing regarding Meta Platforms, Inc. (NASDAQ:META) successful its Q1 2026 capitalist letter:

"Meta Platforms, Inc. (NASDAQ:META) detracted from show contempt reporting fourth-quarter 2025 gross maturation of +24% and guiding to accelerating gross maturation of +30%, its fastest since 2021. The marketplace began punishing stocks, specified arsenic Meta's, that are spending heavy connected capex to money AI-related infrastructure, careless of the tremendous productivity gains they person exhibited - with headcount up conscionable +6% connected +24% gross growth. The marketplace further pressured the banal aft lipid prices spiked astatine the opening of March. The presumption was that disposable income would beryllium cannibalized astatine the pump, pressuring broader retail enactment and related advertisement budgets. The guardant net aggregate connected Meta has fallen to levels much accordant with overmuch slower maturation than the Company has guided to. After trimming Meta respective times implicit the past fewer years, we are much apt to adhd to positions based connected the beardown Company-specific benefits that their semipermanent AI investments are yielding, fixed a valuation that is astatine a important discount compared to maturation stocks and caller history."

Meta Platforms, Inc. (NASDAQ:META) holds 5th presumption connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 256 hedge money portfolios held Meta Platforms, Inc. (NASDAQ:META) astatine the extremity of the 4th quarter, compared to 273 successful the erstwhile quarter. While we admit the imaginable of Meta Platforms, Inc. (NASDAQ:META) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.