{"id":355278,"date":"2026-03-30T14:12:09","date_gmt":"2026-03-30T14:12:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/355278\/"},"modified":"2026-03-30T14:12:09","modified_gmt":"2026-03-30T14:12:09","slug":"why-i-just-bought-this-magnificent-ai-stock-hand-over-fist","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/355278\/","title":{"rendered":"Why I Just Bought This Magnificent AI Stock Hand Over Fist"},"content":{"rendered":"<p>Shares of Meta Platforms (<a href=\"https:\/\/www.fool.com\/quote\/nasdaq\/meta\/\" class=\"font-bold hover:underline\" rel=\"nofollow noopener\" target=\"_blank\">META<\/a> +0.58%) 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.<\/p>\n<p>The stock&#8217;s tumble probably doesn&#8217;t boil down to one thing; many Magnificent Seven stocks have stumbled from their highs. Investors may be concerned about the company&#8217;s aggressive spending on artificial intelligence (AI). If that weren&#8217;t enough, Meta just lost a court battle that could open the door for hefty damages in future litigation.<\/p>\n<p>Here&#8217;s why I hit the buy button on <a href=\"https:\/\/www.fool.com\/investing\/how-to-invest\/stocks\/how-to-invest-in-facebook-stock\/\" class=\"text-cyan-900 hover:text-cyan-800\" rel=\"nofollow noopener\" target=\"_blank\">Meta stock<\/a>, despite all of that.<\/p>\n<p><img alt=\"Meta Platforms graphic.\" loading=\"lazy\" width=\"880\" height=\"587\" decoding=\"async\" data-nimg=\"1\" class=\"h-auto max-w-full rounded object-contain\" style=\"color:transparent\"   src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/03\/1774879929_811_.png\"\/><\/p>\n<p class=\"caption\">Image source: The Motley Fool.<\/p>\n<p>Meta is an obvious AI winner<\/p>\n<p>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&#8217;ll exclude Reality Labs for a moment, which has been a <a href=\"https:\/\/www.fool.com\/investing\/2026\/03\/22\/prediction-pivoting-away-from-metaverse-will-help\/\" class=\"text-cyan-900 hover:text-cyan-800\" rel=\"nofollow noopener\" target=\"_blank\">genuine cash inferno<\/a>.<\/p>\n<p>AI is a positive tailwind for several aspects of digital advertising, Meta&#8217;s bread and butter. AI is automating ad creation and improving pricing by matching ads to their ideal target audiences. As a result, Meta&#8217;s operating cash flow has surged since 2022, which CEO Mark Zuckerberg is pumping right back into the company for AI.<\/p>\n<p>Plenty of room for future monetization<\/p>\n<p>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.<\/p>\n<p>The company&#8217;s daily active app users reached 3.58 billion in December 2025, up 7% year over year. It&#8217;s remarkable that Meta&#8217;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.<\/p>\n<p><img alt=\"Meta Platforms Stock Quote\" loading=\"lazy\" width=\"64\" height=\"64\" decoding=\"async\" data-nimg=\"1\" class=\"w-full flex-none object-contain\" style=\"color:transparent\"  src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/03\/1774879929_743_.png\"\/><\/p>\n<p>Today&#8217;s Change<\/p>\n<p>(0.58%) $3.03<\/p>\n<p>Current Price<\/p>\n<p>$528.75<\/p>\n<p>Key Data Points<\/p>\n<p>Market Cap<\/p>\n<p>$1.3T<\/p>\n<p>Day&#8217;s Range<\/p>\n<p>$528.61 &#8211; $537.18<\/p>\n<p>52wk Range<\/p>\n<p>$479.80 &#8211; $796.25<\/p>\n<p>Volume<\/p>\n<p>327K<\/p>\n<p>Avg Vol<\/p>\n<p>15M<\/p>\n<p>Gross Margin<\/p>\n<p>82.00%<\/p>\n<p>Dividend Yield<\/p>\n<p>0.40%<\/p>\n<p>Should investors fear Meta&#8217;s recent courtroom defeat?<\/p>\n<p>Just recently, a jury ruled against Meta Platforms in a lawsuit over social media safety for young users. It&#8217;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.<\/p>\n<p>While this could cause financial harm to Meta, it may actually strengthen the company&#8217;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.<\/p>\n<p>Putting it all together<\/p>\n<p>Right now, Meta stock is trading at around $560 per share, less than 19 times its 2026 earnings estimates. That&#8217;s a compelling value for one of the world&#8217;s most powerful companies, especially given analyst estimates of 22% annualized long-term earnings growth.<\/p>\n<p>Meta Platforms seems like a lock as one of AI&#8217;s biggest long-term winners. Despite the recent drama and falling stock price, this will likely be a tremendous buying opportunity in hindsight.<\/p>\n","protected":false},"excerpt":{"rendered":"Shares of Meta Platforms (META +0.58%) have fallen 30% from their high. Such declines are rare for the&hellip;\n","protected":false},"author":2,"featured_media":355279,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[365,363,364,111,139,69,145],"class_list":{"0":"post-355278","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-new-zealand","12":"tag-newzealand","13":"tag-nz","14":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/355278","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=355278"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/355278\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/355279"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=355278"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=355278"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=355278"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}