Meta Undervalued Despite Increased AI Spending

2 months ago

Parkev Tatevosian, CFA

"I mentioned that investors have not been happy about Meta's investments in growing the capital expenditures in order to support their artificial intelligence capabilities. And that disappointment is leading to an undervaluation in meta stock which is trading at $626 today. The intrinsic value per share I calculated is $853. So, while the increasing spending is increasing risk, I think the price correction has more than offset that increase in risk. And so, I still see Meta as a great long-term investment opportunity."

The speaker highlights that despite concerns over rising AI-related expenditures, META stock is undervalued, trading at $626 compared to an intrinsic value of $853. This discrepancy suggests a compelling long-term investment opportunity, as the price correction has mitigated the increased spending risk.

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