Should You Buy Meta Stock While It's Under $700?

Core Insights - Meta Platforms' stock experienced a significant decline of over 10% following its third-quarter earnings report, primarily due to investor concerns regarding its artificial intelligence (AI) spending [1][9] - Despite the stock drop, Meta's financial performance remains strong, with a 26% year-over-year revenue increase to $51 billion, driven by a 14% rise in ad impressions and a 10% increase in average ad prices [3][4] Business Performance - The core advertising business of Meta is performing well, with substantial revenue growth and increased ad engagement metrics [3] - AI investments are reportedly enhancing ad performance, contributing to a 5% increase in ad conversions on Instagram and a 3% increase on Facebook [4] Investment Considerations - The current stock price represents a low point for Meta, potentially presenting a buying opportunity despite concerns over AI capital expenditures [5][6] - The company's strong cash flow from its advertising business supports its ability to invest in AI, aligning with trends seen in other leading tech companies [6]