If you’re looking to invest some extra cash before the end of the year, Meta Platforms (META +0.45%) is offering a great buying opportunity after its recent pullback. The Instagram owner is reporting solid revenue growth while investing in artificial intelligence (AI) infrastructure to support the growth in the business over the long term.

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Why the stock is a buy

Meta is one of the most dominant companies in the world. There are over 3.5 billion people that use one of its apps every day, which include Facebook, Instagram, WhatsApp, and Threads. That’s a huge base that gives the company ample opportunities to make money from digital advertising.

Meta is using AI to better target ads on its platforms and drive higher user engagement with more relevant content recommendations. This is one reason why it was able to post a stellar 26% year-over-year increase in revenue in the third quarter.

Meta Platforms

Today’s Change

(0.45%) $2.77

Current Price

$621.71

Moreover, it is showing the potential to expand its growth beyond advertising. For example, its Meta AI personal assistant now has over 1 billion regular users, while the Ray-Ban Meta smart glasses are selling well.

Analysts expect the company to grow earnings at an annualized rate of about 15%. If it maintains mid-teens earnings growth over the next decade, that compounding growth could quadruple the stock by 2035. Meta Platforms stock trades at a reasonable forward (one-year) earnings multiple of 21, which is very attractive for this dominant business.