--- title: "Meta Stock Hasn’t Been This Cheap in Years. Is It a Buy?" type: "News" locale: "en" url: "https://longbridge.com/en/news/290338056.md" description: "Meta stock has retreated 27% from its peak, with valuation dropping to $1.47 trillion and P/E ratios hitting multi-year lows due to heavy AI capex spending and market fears. Despite technical bearish signals suggesting further downside, analysts remain bullish with average price targets around $834, citing strong advertising revenue growth of 33% and net income surge of 61%. Meta is considering raising $85 billion to fund investments." datetime: "2026-06-20T19:21:01.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/290338056.md) - [en](https://longbridge.com/en/news/290338056.md) - [zh-HK](https://longbridge.com/zh-HK/news/290338056.md) --- # Meta Stock Hasn’t Been This Cheap in Years. Is It a Buy? **Meta Platforms** (NASDAQ:META) stock is underperforming the market this year. It ended the week at $577, down by 27% from its highest point last year, with its valuation falling from $2 trillion to $1.47 trillion. ## Meta Platforms Has Become a Bargain The ongoing Meta stock retreat has made it a bargain. Its trailing price-to-earnings ratio has dropped to 20, its lowest level since February 27 2023. It has been in a slow downtrend after peaking at 32 in October last year. The company’s forward price-to-earnings ratio has slipped to 17, lower than the technology sector average of 33. It is also lower than its five-year average of 22. Similarly, the forward price-to-earnings-to-growth ratio has slipped to 86 cents, also lower than the sector median of 1.2. Meta Platforms stock has retreated because of the ongoing investments in artificial intelligence and fears that it will dilute its shareholders. It plans to spend $135 billion this year, up from the previous guidance of $115 billion, citing the rising chip prices. Its spent $72 billion in capex last year.  The company is planning to raise cash to fund this capital investment. According to the FT, it is considering raising about $85 billion, following in the footsteps of **Alphabet** (NASDAQ:GOOG), which raised $80 billion through a combination of debt and equity. **Read Also: Tim Cook Says 'Pretty Good' Workers Master Their Jobs, While 'Brilliant' Workers Do This One Thing To Get To 100%: Excellence Can Only Get You So Far** Most importantly, there are concerns about the return on investment in its AI investments. Meta AI, its main artificial intelligence platform, has a smaller market share compared to ChatGPT, Claude, and Google Gemini. A recent report suggested that Grok, Perplexity, DeepSeek, and Meta AI commanded less than 5% of the share. ## Analysts are Bullish on Meta Platforms Stock On the positive side, analysts are still bullish on the Meta stock price. According to Benzinga, the average estimate among analysts is $834, up by 45% from the current level. RBC Capital maintained their target at $810, while Rosenblatt maintained at $1,015. Wedbush boosted their rating from neutral to outperform, while Mizuho hiked to $850.  One of the main reasons for this is that it is still growing because of its advertising business. The most recent Meta earnings showed that its revenue jumped by 33% to $56.3 billion. Its net income soared by 61% to $26 billion. The average estimate among analysts is that its revenue jumped by 25% this year to $237 billion. It will then make over $282 billion next year, and this gradual growth will continue over time.  ## Technicals Pose a Big Risk to Meta Platforms Shares ![meta platforms stock](https://imageproxy.pbkrs.com/https://editorial-assets.benzinga.com/wp-content/uploads/2026/06/20141958/Meta-Platforms-stock-1024x567.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) _META stock chart | Source: TradingView_ A key risk facing Meta Platforms is that its technicals suggest it has more downside over time. The weekly chart shows that it has slumped below the 23.6% Fibonacci Retracement and the 50-week moving average.  It has also formed a multi-month head-and-shoulders pattern, a common bearish reversal sign. Also, the two lines of the MACD have continued falling. Therefore, technicals suggest that the stock may continue falling, potentially to $500. **Read Also: Shayne Coplan May Be in the Betting Business, But He Doesn't Like Hedging His Bets: 'Go All In,' Says Polymarket CEO Who Built a $15 Billion Startup** _Image: Shutterstock_ ### Related Stocks - [META.US](https://longbridge.com/en/quote/META.US.md) - [METU.US](https://longbridge.com/en/quote/METU.US.md) - [METD.US](https://longbridge.com/en/quote/METD.US.md) - [METW.US](https://longbridge.com/en/quote/METW.US.md) - [FBL.US](https://longbridge.com/en/quote/FBL.US.md) - [FBY.US](https://longbridge.com/en/quote/FBY.US.md) - [FBYY.US](https://longbridge.com/en/quote/FBYY.US.md) - [MAGX.US](https://longbridge.com/en/quote/MAGX.US.md) - [GOOG.US](https://longbridge.com/en/quote/GOOG.US.md) - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) - [RY.US](https://longbridge.com/en/quote/RY.US.md) - [MFG.US](https://longbridge.com/en/quote/MFG.US.md) - [8411.JP](https://longbridge.com/en/quote/8411.JP.md) ## Related News & Research - [Meta cut 8,000 jobs after its best quarter ever — months earlier, 6 executives got options worth up to $921 million each](https://longbridge.com/en/news/290591359.md) - [Meta pauses an AI training program that tracks employees' keystrokes after a companywide leak](https://longbridge.com/en/news/290475410.md) - [Meta's CTO says morale is almost 'the worst it's ever been'](https://longbridge.com/en/news/289961445.md) - [1,224 Shares in Meta Platforms, Inc. $META Purchased by Nolet Wealth Management LLC](https://longbridge.com/en/news/290343097.md) - [Meta COO Javier Olivan disposes of Meta common shares worth $838,800](https://longbridge.com/en/news/290111533.md)