Just caught something interesting about the Magnificent Seven tech stocks - turns out the cheapest share to buy right now is Meta, and honestly it's worth a closer look if you're into this space.



So here's what's happening. All seven of these mega-cap tech companies (Nvidia, Apple, Alphabet, Microsoft, Amazon, Meta, Tesla) are trading at pretty wild valuations most of the time. But Meta's actually cheaper than the broader market right now when you look at forward P/E ratios. We're talking 21.1 versus 21.9 for the S&P 500. That doesn't happen often with these blue-chip names.

The reason Meta became the cheapest share to buy in this group? The market's basically freaking out about their AI spending. Last quarter they pulled in $59.9B in revenue - up 24% year-over-year - but here's the thing: $58.1B of that came straight from ads. Their Reality Labs division? Lost $6B. And now they're planning to drop $115-135B on capex in 2026, mostly for AI infrastructure.

People are nervous because we've seen this movie before. Zuckerberg spent billions on the metaverse hype and... well, it didn't exactly pay off. So investors are wondering if AI becomes the next money pit. Until Meta actually proves their AI investments generate real profits instead of just burning cash, the stock probably won't trade at the premium valuations it used to command.

That said, if you genuinely believe in their AI strategy and have patience to wait for results, the cheapest share to buy among these giants could turn into a solid opportunity. The company did guide for higher operating income in 2026 despite the massive capex, so there's still a growth narrative here. Just depends on whether you're willing to bet on their AI pivot actually working out. It's a contrarian play for sure.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin