Is Meta a good buy now? Seeking Alpha analysts weigh in

what happened

Seeking Alpha asked its analysts whether now is a good time to buy Meta Platforms shares. One contributor keeps a Hold rating, arguing that AI is improving the ad business but that new revenue streams outside advertising are not yet visible, while rising capital spending, Reality Labs losses and litigation costs weigh on the case.

Another analyst, Daniel Jones, notes that the stock has fallen about 15% over the past year even as revenue and profit reached records. He points to family daily active people rising to 3.64B, average revenue per person climbing from $14.46 to $17.72, and fast WhatsApp growth. By his estimate, excluding Reality Labs the company trades at an EV/EBITDA multiple of 13.7. Risks he cites include a $25B civil penalty tied to the Cambridge Analytica case and a $9.89B charge over teen mental health litigation.

why it matters

For markets, the debate centers on whether heavy AI spending will pay off and whether Meta can grow revenue beyond advertising. Jones argues the planned $95B raise will have minimal dilution given the company's market value, though it adds to the financing needs as AI spending ramps up.

market impact

Meta and social media stocks: analyst disagreement and rising AI capex add uncertainty to the valuation

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