Is Meta Platforms Stock a Buy Below $650?

Core Viewpoint - Meta Platforms has experienced a significant stock recovery since late 2022, driven by investments in AI, but recent performance indicates a plateau, raising questions about future growth potential [3][5][10]. Financial Performance - In Q3 2025, Meta's revenue grew 26.2% year-over-year to $51.24 billion, surpassing analyst expectations by 3.71% [6][10]. - The company's cash per share declined by 76.74% year-over-year, reflecting a strategic decision to invest up to $72 billion in AI for 2025 [6][11]. Stock Performance - Meta's stock price fell from a peak near $785 to below $600 before recovering to around $650, indicating volatility and market caution [5][10]. - The stock has remained flat over the past six months, suggesting that investors are awaiting tangible results from AI investments before increasing their valuation of the stock [5][10]. Strategic Direction - CEO Mark Zuckerberg's pivot towards AI was a response to stagnation in user growth within the Family of Apps segment, which includes Facebook, Instagram, WhatsApp, and Messenger [8][9]. - The introduction of AI technologies, particularly following the emergence of ChatGPT, has revitalized Meta's growth prospects, leading to a more favorable market perception [9][10]. Investment Considerations - Analysts express caution regarding further investments in Meta stock, suggesting that the current premium may not justify the risks associated with its concentrated focus on AI [13][15]. - Alternatives such as Alphabet and Microsoft are recommended for those looking to invest in AI and advertising synergies, as they may offer more diversified growth opportunities [14][15].