Is This AI Stock a Buy After Dropping 20% From Its All-Time High?

Meta Platforms (NASDAQ: META) has had a unsmooth spell implicit the past year. It past acceptable a new, all-time precocious successful July 2025, but is presently sitting astir 20% down from that level. With the remainder of the marketplace rallying and hovering astir all-time highs, it whitethorn look similar a astute clip to look astatine immoderate stocks that haven't received arsenic overmuch love, similar Meta.

Let's instrumentality a look astatine Meta Platforms and spot if it's a worthy investment.

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Meta is ungraded inexpensive and increasing rapidly

Meta Platforms is astir apt amended known by its erstwhile name, Facebook. Despite the sanction switch, it's inactive predominantly a societal media company, with astir each of its gross coming from ads connected Facebook, Instagram, WhatsApp, and Threads. While the metaverse was a flop, Meta is utilizing immoderate of the lessons it's learned and the technologies it's developed to seizure a massive, high-potential market: artificial quality (AI).

Meta's eventual extremity is to bring a superintelligence level to the masses successful the signifier of glasses, enabling AI to interact with the existent world. If Meta tin execute this, it volition beryllium a large winner, arsenic nary of that occurrence is priced into its stock.

Instead, Meta's banal really looks beauteous inexpensive for however beardown the concern is. In Q1 2026, gross roseate an awesome 33% twelvemonth implicit year. A batch of this maturation is coming from rising advertisement impressions and prices, which person seen a boost acknowledgment to assorted AI tools being implemented crossed its platform. As these improvements turn and go much impactful, it volition let Meta's maturation to prolong itself for a portion until it tin hopefully motorboat a compelling AI product.

You'd deliberation with a maturation complaint similar that, it would commercialized astatine 1 of the highest premiums among its large tech peers, but you'd beryllium wrong. Instead, Meta trades astatine a discount to its peers that it's increasing faster than (as seen successful the charts below).

META Revenue (Quarterly YoY Growth) information by YCharts

As different note, Meta trades for little than 20 times guardant earnings, portion the S&P 500 trades for 21.8. So not lone is Meta inexpensive compared to its large tech peers, it's besides cheaper than the wide market. The banal looks similar a uncommon operation of some worth and growth, which makes it an charismatic bargain close now.