META Valuation Remains Attractive, Says Wolfe

Meta Platforms, Inc. (NASDAQ:META) is one of the 12 Stocks Most Bought by Hedge Funds in Q1 2026. On May 21, Wolfe Research reiterated its Outperform rating on Meta Platforms, Inc. (NASDAQ:META) with a price target of $800, pointing to an attractive valuation despite worries about the company’s capital expenditure levels.

Wolfe Research pointed out that the stock is trading at about 16 times its estimated 2027 earnings. The firm believes Meta Platforms, Inc. (NASDAQ:META) is arguably a higher-quality asset than most of the S&P 500, even though its stock trades at a material discount.

Meta App 3D sign

The research firm noted that investors are concerned that Meta Platforms, Inc.’s (NASDAQ:META) growth may have peaked. Other worries include limited visibility into the company’s return on invested capital, negative free cash flow, and annual capital expenditures of around $145 billion. Investors are also skeptical about how the company is allocating its capital spending and what near-term catalysts could drive the stock higher.

Despite these concerns, Wolfe Research forecasts 2027 revenue growth of 22% year-over-year compared to Wall Street’s estimate of 19%.

Meta Platforms, Inc. (NASDAQ:META) is an American multinational technology company that owns and operates Facebook, Instagram, Threads, Messenger, and WhatsApp.

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