Meta (META) Trades at a Discount to Magnificent Seven After $1 Trillion AI Rally
Apr 10, 2024 - bloomberg.com
Meta Platforms Inc., formerly known as Facebook, has seen a significant increase in its market value, adding $1 trillion since the start of 2022 due to its AI-driven rally. Despite this, some believe it is still trading at a discount. Its shares were trading at 24 times estimated earnings, which is in line with their 10-year average and slightly below the Nasdaq 100's 25 times.
Among the "Magnificent Seven" group of major tech companies, only Alphabet Inc. is cheaper, with a multiple of about 21. This suggests that despite Meta's impressive growth, there may still be room for further value appreciation.
Key takeaways:
Meta Platforms Inc.'s artificial intelligence-fueled rally has added $1 trillion in market value since its darkest days of 2022.
Despite this increase, the company's shares are still considered to be trading at a discount.
The shares traded at 24 times estimated earnings, which is in line with their 10-year average and just below the 25 times of the Nasdaq 100.
Among the Magnificent Seven group of big tech companies, only Alphabet Inc. is cheaper with a multiple of about 21.
