Meta Platforms, Inc. (META): A Bull Case Theory

We came across a bullish thesis on Meta Platforms, Inc. on techcache’s Substack by Joe Albano. In this article, we will summarize the bulls’ thesis on META. Meta Platforms, Inc.'s share was trading at $743.75 as of September 26th. META’s trailing and forward P/E were 26.99 and 25.19 respectively according to Yahoo Finance.

Meta Platforms, Inc. (META) has emerged as a standout among large tech companies by leveraging AI to drive tangible business results rather than focusing solely on hypothetical or pure-AI products. While the company’s platforms: Facebook, Instagram, and Reels face scrutiny for societal impact, Meta’s disciplined AI integration has accelerated revenue growth and profitability, particularly in its digital advertising business.

By embedding AI into ad targeting, delivery, and analysis, Meta has generated tens of billions in additional cash, which it has reinvested into AI, creating a self-reinforcing cycle of growth and innovation. This approach contrasts with the common misconception that AI’s commercial value only comes from standalone products; instead, Meta’s internal AI enhancements have improved the performance and efficiency of its existing offerings, delivering outsized returns.

The financial impact is evident: Meta’s digital advertising revenue grew by $8.2 billion year-over-year in the most recent quarter, significantly outpacing competitors like Amazon, which grew by $2.9 billion, and Google, which lags in comparable growth. AI-driven improvements in ad recommendations increased conversions by 5% on Instagram and 3% on Facebook, while ad impressions and pricing rose 11% and 9% year-over-year, respectively, even amid consumer spending headwinds. These results underscore Meta’s dominant position in digital advertising and its ability to capture market share through technology-driven efficiency.

Overall, Meta represents a unique investment case where AI is not just experimental but profit-generating, enhancing the core business while reinforcing its leadership in digital advertising. The company’s proven ability to convert technological investment into tangible financial outcomes provides a compelling risk/reward profile for investors seeking exposure to AI-driven growth within a mature, cash-generative platform.

Previously we covered a bullish thesis on Meta Platforms, Inc. (META) by LongYield in May 2025, which highlighted the company’s AI-driven ad growth, strong Q1 financials, and strategic AI investments. The company's stock price has appreciated approximately by 30% since our coverage. This is because the thesis played out with continued ad revenue acceleration. Joe Albano shares a similar perspective but emphasizes AI’s direct impact on ad efficiency and market share.

Meta Platforms, Inc. is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 260 hedge fund portfolios held META at the end of the second quarter which was 273 in the previous quarter. While we acknowledge the potential of META as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.