Meta Platforms stays a buy on AI-driven ad gains and strong revenue growth despite higher CapEx.

Meta Platforms maintains a buy rating due to its AI-powered advertising efficiency and solid revenue growth. Its AI models, such as GEM and Lattice, have improved conversion rates and optimized costs, supporting strong operating margins. Although Meta plans to increase capital expenditures to $125–$145 billion by 2026, these investments are justified by high returns on invested capital and continued pricing power in advertising. Valuation metrics also suggest Meta is undervalued compared to Google, making it an attractive investment opportunity.