1 Surefire Artificial Intelligence (AI) Stock to Buy on the Dip

Core Viewpoint - The recent decline in Meta Platforms' stock price presents a buying opportunity, as the company's fundamentals remain strong despite a temporary setback in earnings [2][15]. Financial Performance - Meta Platforms reported a 26% year-over-year increase in third-quarter revenue, reaching $51.2 billion, supported by a growing user base of 3.5 billion daily active users, an 8% increase from the previous year [5]. - Earnings per share (EPS) fell to $1.05, an 83% decrease compared to the same period last year, primarily due to rising costs and a significant one-time tax expense of $15.93 billion [5][7]. Business Operations - The company continues to leverage artificial intelligence (AI) to enhance user engagement, with time spent on Facebook increasing by 5%, Threads by 10%, and video consumption on Instagram rising by 30% year-over-year [3]. - Meta is improving its advertising processes through AI, which is expected to enhance revenue generation from its primary sales source [4]. Future Outlook - Despite the current challenges, Meta's management anticipates continued growth in AI-related spending, which is expected to accelerate further in 2026 [6]. - The company is exploring new revenue streams, such as paid messaging, which, while not immediately impactful, could contribute to long-term growth [12]. Valuation - Meta's stock appears reasonably valued compared to its peers, with a low forward price-to-earnings (P/E) ratio and high revenue growth potential [13].