By Petar Petrov
Source: TradingView
Key Points
- Meta is in the middle of an intensive AI capex cycle, which will weigh on margins and EPS growth in the near future
- Meta’s brand value is so strong that it has defined the age we live in – the age of social media
- The high margin nature of Meta’s ad business enables them to invest massive amounts of funds into AI
- With the emergence of open-source language models, Meta can utilize the capabilities of their Llama family of models to become a frontrunner in AI
- In the long run, the AI-related tools will help Meta provide a strong value proposition to advertisers
- Meta has plenty of room for monetization, with Threads still in early stage
- In the context of Mag7, Meta is quite cheap, but the gloomy earnings prospects related to the near future spending make the stock already not attractive
Investment Thesis
Meta's stock price has grown remarkably...
