Meta: Buy The AI Spending Panic

Meta Platforms, Inc. (META) delivered one of the more complicated Mag 7 earnings reports of this quarter. The company did not miss the top line. Revenue grew 28% year-over-year to $60.80 billion, advertising revenue grew 27%, ad impressions increased.

I remain Buy-rated on META, emphasizing the resilient ad business, robust user engagement, and tangible AI-driven monetization improvements. The market is overly focused on the free cash flow shock, underappreciating AI's immediate positive impact on ad performance and platform economics. Risks include prolonged high capex, unclear AI monetization beyond ads, and regulatory/legal pressures, but I prefer buying META on this weakness.