Meta Platforms, Inc. (META) Reported the Best Results Among Mag 7, Prominent Investor Says

During the current earnings season, Meta Platforms, Inc. (META) reported the best quarterly financial results of any Mag 7 stock, well-known investor Stephanie Link said recently on CNBC

Link, who is the Chief Investment Strategist at Hightower, owns Meta Platforms, Inc. (META) stock, and she recommended that investors buy the name.  

AI Has Helped META, Link Says

As a result of Meta's utilization of AI, "time spent on Facebook increased 7%," Link reported.  Similarly, the tech giant was able to use AI to raise the amount of time that users spent on Instagram by 6%, the investor stated.

"They are monetizing AI, and that's why META stock is a buy," Link asserted.

Link Suggests That the Valuation of Meta Platforms, Inc. (META) Stock Is Attractive

The stock "is still down 19% from its highs, trading at 17 times (its) earnings," she said.

More About META 

Analysts on average expect the company's earnings per share to climb to $25.66 this year from $23.86 in 2024. The mean estimate calls for its EPS to advance to $28.36 in 2026.

In the last month, the stock has gained 11%, while the shares have fallen 15% in the last three months.

While we acknowledge the potential of META, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than META but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.