Meta (META): Evaluating Valuation After Major AI Data Center Expansions and Strategic Partnerships

Meta Platforms, Inc. (META) is making major moves in artificial intelligence, having just broken ground on a $1.5 billion AI data center in El Paso, Texas, and finalized a key private financing deal for its Hyperion facility in Louisiana.

These infrastructure and partnership updates are designed to accelerate Meta’s AI capabilities and expand the company’s reach across both its core platforms and broader developer ecosystems. Investors are watching these developments, as Meta’s leadership continues to focus on AI-driven growth strategies.

See our latest analysis for Meta Platforms.

Meta’s expanded investments in AI infrastructure and partnerships are landing at a time when its stock price has seen both excitement and a little volatility. After strong momentum earlier this year, the last month brought a 7.9% pullback in the share price. Still, Meta boasts a 1-year total shareholder return of 25% and has delivered an eye-catching 456% total return over three years, showing that long-term momentum is firmly intact as the company repositions itself for the AI era.

If Meta’s big AI push has you curious about other tech leaders charting new territory, consider exploring See the full list for free..

Given Meta’s strong financial performance and bold AI investments, some investors may wonder if the recent dip offers an attractive entry point or if today’s price already reflects much of the company’s future upside.

Most Popular Narrative: 16.9% Undervalued

Meta’s narrative-implied fair value suggests substantial upside compared to the latest close. Analysts see the valuation supported by future growth and margin dynamics, even as market volatility adds intrigue.

Analysts are assuming Meta Platforms's revenue will grow by 15.6% annually over the next 3 years. Analysts assume that profit margins will shrink from 40.0% today to 33.4% in 3 years time.

Read the complete narrative.

Want to see the rationale behind such bullish targets? The narrative’s valuation is built on aggressive revenue growth and margin assumptions, along with a premium profit multiple. The exact numbers might surprise you. Find out what could really power Meta’s next big move.

Result: Fair Value of $863 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, rising operating expenses from aggressive AI investments and ongoing regulatory pressures could quickly dampen Meta’s impressive growth narrative.

Find out about the key risks to this Meta Platforms narrative.

Build Your Own Meta Platforms Narrative

If you have your own theories or want to dig deeper into the numbers, you can build and test your own narrative in just a few minutes by using Do it your way.

A great starting point for your Meta Platforms research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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