Meta trades at 17x forward earnings as market frets over AI spending and execution risk

Meta Platforms (META) is trading at about 17x forward earnings, well below its five-year average, as investors price in pressure from AI capital spending and execution risk. The article argues the company’s roughly $145B AI outlay may be nearing a peak, while AI-driven improvements in ad return on ad spend (ROAS) are starting to support profitability. It also points to Meta’s 3.5B monthly active users as a long-term monetization option through avenues such as subscriptions. On the technical side, the author notes the stock holding above $480 and calls it an undervalued buying opportunity.