Meta Platforms Trades At The Lowest Multiple Among Mag 7 Stocks

Meta Platforms beat Q1 expectations with revenue up ~33% year-over-year and strong EPS, but shares plunged after management raised 2026 CapEx guidance, prompting an immediate -5% to -6% intraday selloff (pre-market showing ~-8.5%). The report highlighted accelerating operational trends—ad impressions +19%, ad prices +12% and AI-driven business-agent conversations up 10x in four months—while free cash flow remains healthy. The market appears to be punishing Meta for higher infrastructure and memory-related spending despite robust growth, leaving META trading at a lower multiple than its Magnificent Seven peers. The author views the reaction as an overreaction and frames the stock as a compelling risk/reward given continued top-line and AI-driven monetization momentum.