rewrite this title and make it good for SEOWhy I Just Bought This Magnificent AI Stock Hand Over Fist

Shares of Meta Platforms (NASDAQ: META) have fallen 30% from their high. Such declines are rare for the social media giant, occurring only a handful of times in the past 10 years. I must confess, I bought the dip hand over fist.

The stock’s tumble probably doesn’t boil down to one thing; many Magnificent Seven stocks have stumbled from their highs. Investors may be concerned about the company’s aggressive spending on artificial intelligence (AI). If that weren’t enough, Meta just lost a court battle that could open the door for hefty damages in future litigation.

Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »

Here’s why I hit the buy button on Meta stock, despite all of that.

While many cloud companies are spending like crazy on AI to build new businesses, Meta is spending on AI to strengthen its own. OK, I’ll exclude Reality Labs for a moment, which has been a genuine cash inferno.

AI is a positive tailwind for several aspects of digital advertising, Meta’s bread and butter. AI is automating ad creation and improving pricing by matching ads to their ideal target audiences. As a result, Meta’s operating cash flow has surged since 2022, which CEO Mark Zuckerberg is pumping right back into the company for AI.

Meta still has an embarrassment of riches in terms of future monetization opportunities. There is additional e-commerce potential in Facebook and Instagram. Meanwhile, Meta has barely started leaning into advertisements on WhatsApp and Threads.

The company’s daily active app users reached 3.58 billion in December 2025, up 7% year over year. It’s remarkable that Meta’s audience continues to grow, as it has from such a large base, and it represents a vast distribution network for any product or service Meta launches.

Just recently, a jury ruled against Meta Platforms in a lawsuit over social media safety for young users. It’s a potential landmark moment because it could set a precedent holding social media companies liable for how young people use their platforms, opening the door to additional litigation and future damages.

While this could cause financial harm to Meta, it may actually strengthen the company’s long-term competitive positioning. Much as tobacco litigation did decades ago, the litigation could ultimately stifle new competition by making it riskier and more difficult to build new social media apps.

Right now, Meta stock is trading at around $560 per share, less than 19 times its 2026 earnings estimates. That’s a compelling value for one of the world’s most powerful companies, especially given analyst estimates of 22% annualized long-term earnings growth.

Meta Platforms seems like a lock as one of AI’s biggest long-term winners. Despite the recent drama and falling stock price, this will likely be a tremendous buying opportunity in hindsight.

Before you buy stock in Meta Platforms, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Meta Platforms wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $503,861!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,026,987!*

Now, it’s worth noting Stock Advisor’s total average return is 884% — a market-crushing outperformance compared to 179% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of March 30, 2026.

Justin Pope has positions in Meta Platforms. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy.

Why I Just Bought This Magnificent AI Stock Hand Over Fist was originally published by The Motley Fool