As Mark Zuckerberg Unveils Meta Compute, Should You Buy, Sell, or Hold META Stock?

Core Insights - Meta Platforms has launched Meta Compute, a significant initiative aimed at enhancing its AI infrastructure and data centers, indicating that AI is now a central element of its long-term strategy [1] Industry Overview - Gartner forecasts a 9.8% increase in global IT spending by 2026, surpassing $6 trillion, with a notable portion dedicated to AI and cloud infrastructure [2] - The data center solutions market is expected to grow at a 19.7% compound annual growth rate (CAGR) from 2025 to 2030, increasing from approximately $448.95 billion to about $1.11 trillion, highlighting the rapid expansion of compute infrastructure [2] Company Performance - Meta Platforms has an equity value of around $1.6 trillion and offers a forward annual dividend of $2.10, yielding 0.33% [4] - As of January 14, META shares were priced around $616, with a year-to-date return of -7% but a 52-week gain of 4% [4] - The company has a trailing price-to-earnings (P/E) multiple of 22, compared to a sector median of 14, and a forward P/E of 21 against 16, indicating a premium on Meta's earnings potential as it invests in AI infrastructure [5] Financial Results - In the latest quarter, Meta reported an adjusted diluted EPS of $7.25, exceeding the consensus estimate of $6.61 by nearly 10%, suggesting strong core business performance despite a weaker GAAP headline number due to a one-time non-cash income tax charge of $15.93 billion [6]