Meta Platforms (META): Reassessing Valuation After Recent Share Price Rebound

Meta Platforms (META) has climbed about 11% over the past month, even after a roughly 12% slide in the past 3 months, leaving investors debating whether this rebound still has room to run.

See our latest analysis for Meta Platforms.

Those gains come after a choppy year, with the share price now at $661.5 and a solid year to date share price return alongside a powerful three year total shareholder return that suggests underlying momentum is still intact.

If Meta’s move has you thinking about what else could surprise to the upside, it is a good moment to explore other high growth tech and AI names through high growth tech and AI stocks.

With analysts still seeing around 25% upside and strong double digit growth in both revenue and profits, investors now face a pivotal question: is Meta still undervalued, or is the market already pricing in years of future expansion?

Most Popular Narrative Narrative: 21.4% Undervalued

With Meta closing at $661.5 against a narrative fair value near $840, the story leans decisively toward upside and sets the scene for one core thesis.

Meta's foundational investments in AI infrastructure (e.g., multi-gigawatt compute clusters, LLM model development) are materially enhancing platform engagement and recommendation quality (e.g., global time spent on video up >20% YoY on Instagram and Facebook), supporting further increases in user engagement, which translates into greater advertising opportunities and revenue scalability.

Read the complete narrative.

Want to see what justifies that gap between price and fair value? The narrative leans on sustained revenue acceleration, resilient margins, and a richer earnings multiple. Curious which specific forecasts power that upside case and how far assumptions stretch into the next few years? Dive in to see the numbers that underpin this valuation call.

Result: Fair Value of $841.42 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, higher AI and metaverse spending, alongside mounting regulatory scrutiny, could pressure margins and undermine the long term upside case investors are betting on.

Find out about the key risks to this Meta Platforms narrative.

Build Your Own Meta Platforms Narrative

If you see the story differently or want to dig into the metrics yourself, you can build a fresh, personalized view in minutes, starting with Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Meta Platforms.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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