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Is Meta (META) Still Undervalued After Its Recent Share Price Rebound?

Simply Wall St · 1d ago

Meta Platforms (META) has quietly added about 7% over the past month even as the stock remains down roughly 13% in the past 3 months, a setup value-focused investors will notice.

See our latest analysis for Meta Platforms.

That recent 7.25% 1 month share price return comes after a choppy quarter, but with the share price now around $666.8 and a 3 year total shareholder return near 485%, momentum still looks broadly constructive for long term holders.

If Meta’s move has you thinking about what else could surprise to the upside, this is a good moment to explore high growth tech and AI stocks as potential next wave candidates.

With earnings still climbing, a sizeable discount to Wall Street targets and hefty multi year gains already booked, the key question now is whether Meta remains undervalued or if the market has fully priced in its next leg of growth.

Most Popular Narrative Narrative: 20.8% Undervalued

With Meta Platforms last closing at $666.8 against a narrative fair value near $841, the most followed view frames current pricing as materially discounted before factoring in how aggressive AI and infrastructure spending could reshape earnings power.

Analysts are assuming Meta Platforms's revenue will grow by 15.6% annually over the next 3 years.

Analysts assume that profit margins will shrink from 40.0% today to 33.4% in 3 years time.

Read the complete narrative.

Curious how slower margins still add up to a higher valuation? The narrative leans on robust revenue growth, powerful platforms and a future earnings multiple that implies lasting dominance. Want to see the exact assumptions behind that gap?

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 data center spending, alongside ongoing Reality Labs losses, could squeeze margins and delay the payoff that underpins this undervalued narrative.

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

Build Your Own Meta Platforms Narrative

If you are not fully convinced by this view or prefer to dig into the numbers yourself, you can build a custom narrative in minutes: 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.