Meta Platforms (Facebook) Stock News

BNP Paribas's Stefan Slowinski warned about Meta's unchecked AI spending. Now he thinks the stock's recent selloff is just the beginning.

Alphabet's Google and Meta Platforms are two growth stocks with the potential to double in value in the next five years. These companies serve billions of users across their services every day.

Meta underperformed the S&P due to investor concerns over rising CapEx for AI investments, echoing past Metaverse worries. There, however, is one key difference to the 2022 metaverse sell-off, making the company a compelling pick right now. By underlying the market growth rate and the compressed cash conversion caused by the AI CapEx, Meta looks nevertheless undervalued by 33%.

Investors are concerned about Meta's capital expenditure plans. MercadoLibre is operating at a high level, yet the stock is slightly down.

Meta will invest $600 billion in the United States by 2028 to build artificial intelligence (AI) data centers. “As the importance of AI grows, so will the importance of data centers,” the company said in a Friday (Nov. 7) press release.

What an earnings season it's been for mega-cap tech stocks. Earnings beats, guidance raises, and expectations of future revenue and profit growth led many of the most closely-watched tech giants to see some meaningful price appreciation following the release of their results.

Taiwan Semiconductor is a critical supplier in the AI arms race. Investors are growing impatient with Meta Platforms' spending plan.

Meta (META +0.50%) revealed critical insights that investors will not want to miss.