We just covered Here is How Billionaire Philippe Laffont’s Top 10 Picks Crushed The Market. Meta Platforms Inc. (NASDAQ:META) ranks #3 (see the Here is How Billionaire Philippe Laffont’s Top 5 Picks Crushed The Market).
YTD Stock Performance: +3%
Philippe Laffont’s Stake: $2.49 Billion
Meta shares were falling early Thursday, and the reason is easy to guess: rising CapEx. Despite investor concerns, Mark Zuckerberg isn’t slowing down spending on AI infrastructure because he can see the rewards fall into the future. But what’s the real bull case for META?
Meta Platforms Inc. (NASDAQ:META) is becoming an advertising powerhouse and is now on track to surpass Alphabet in digital ad revenue, driven by strong AI-led execution. Meta gets about 97% of its revenue from advertising. It’s seeing growth in key metrics like price per ad and total ad impressions. Meta Platforms Inc. (NASDAQ:META) has a strong edge in the ads market in the age of AI. How? Meta ads are shown inside apps like Instagram and Facebook and its tools like Advantage+ analyze massive user data and automatically find the best audiences, improving return on ad spend. On the other hand, Google’s traditional “pull” ads (search-based) are facing pressure as behavior shifts toward AI-driven discovery.
Meta Platforms Inc’s (NASDAQ:META) net digital advertising revenue is expected to reach approximately $240+ billion by 2026, slightly ahead of Alphabet’s Google in the same category, according to eMarketer estimates.
The Meta Training and Inference Accelerator (MTIA) is expected to lower Meta’s reliance on Nvidia chips. META has a forward P/E of 22x, down from its historical average of 25.5x and lower than major Magnificent Seven peers and the broader industry average for high-growth tech.
Montaka Global Investments stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q1 2026 investor letter:
“The strength of an investment opportunity depends on the price at which you can acquire current and future earnings power. We see many instances today of strong competitive advantages being offered by the market at highly-attractive prices. Based on Montaka’s internal assessments, here are several:
Meta Platforms, Inc. (NASDAQ:META) — Towards the end of March, Meta’s stock price hit US$526 per share, a level that implies click here to read the letter in detail”
Photo by austin-distel on Unsplash
While we acknowledge the risk and potential of META as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than META and that has 10,000% upside potential, check out our report about this cheapest AI stock.
READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.
Disclosure: None. Follow Insider Monkey on Google News.
