Is Meta Platforms (META) The Best AI Stock to Buy on the Dip?
July 26, 2025
Meta Platforms Inc (NASDAQ:META) is one of the 10 Stocks to Buy and Sell in 2025: Top Analyst Calls.
Lucas Downey from MoneyFlows said in a latest program on Schwab Network that Meta Platforms is one of the top stocks to buy on any pullback.
“A great case in point would be Meta Platforms Inc (NASDAQ:META). This is a name that I’ve owned for a number of years. First thing is you got to think big themes, right? What is actually working? AI. Meta Platforms Inc (NASDAQ:META) has all this data and they continue to just grow their earnings. What was interesting about Meta is their last time that they had earnings. This is back in April. Just remember how worried the whole world was about earnings. They basically were saying that they were going to guide even higher. Their capex was going to go above and beyond what people were expecting. You can see analysts have been very bullish on this name. So, this would be the type of company that you would want to be looking for on any type of pullback.”
Photo by austin-distel on Unsplash
Meta Platforms (NASDAQ:META) is driving usage and ads revenue by improving its algorithms and user experience thanks to AI. Meta Platforms (NASDAQ:META)’s advancements in Reels and WhatsApp are helping manage CapEx growth as the company strives to stay competitive in AI. Meta Platforms (NASDAQ:META)’s substantial user base of 3.3 billion provides a data and distribution edge that could capture a significant share of the GenAI market.
Meta Platforms can see huge progress related to AI as CEO Zuckerberg is aggressively spending on the technology and hiring top talent to achieve breakthroughs via the Superintelligence Labs team. He recently said his company plans to invest hundreds of billions of dollars on AI infrastructure. The company plans to build a massive 1+ gigawatt supercluster by next year. Mark Zuckerberg’s commitment to AI could make it a key focus in the upcoming earnings call and potentially act as a major catalyst for the stock.
Wedgewood Partners stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its second quarter 2025 investor letter:
“Meta Platforms, Inc. (NASDAQ:META) was once again a leading contributor to performance for the quarter – and our best portfolio performer since the panic-selling lows in the stock back in September of 2022. Revenue grew +16% despite ad-spending headwinds related to trade protectionism, and operating margins expanded thanks to continued investments in automation, driving a stellar +37% growth in earnings per share. The Company has been a consistent beneficiary of artificial intelligence (AI) over the past several years, investing aggressively in deep learning recommendation systems that help power it’s products which reach nearly half the population of the planet. Meta’s AI investments, combined with its massive scale, allow the Company to quickly spin up new products across its digital advertising real estate to reinforce its competitive positioning. Meta’s core Family of Apps products are backed by extremely large and complex (i.e. difficult to copy) AI recommendation systems that have to sort through billions of datapoints in real time and come up with the probability of a user clicking on something. Meta is one of the few companies that has been able to consistently and, most critically, profitably monetize AI technologies for shareholders, and we continue to hold the stock as a top position in portfolios.”
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