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Should You Buy the Dip in Meta Stock? | META Stock Analysis and Live Earnings Review

Parkev Tatevosian, CFA•Jul 31, 2026

Summary

Parkev states that Meta Platforms' latest earnings report presents a complex picture of rapid AI investment balanced against slowing revenue growth. Parkev argues that while the 28% year-over-year revenue growth was a deceleration from the previous quarter's 33%, the company's ability to drive higher engagement and ad prices demonstrates a widening competitive moat. Parkev highlights that Meta's headcount reduction alongside revenue growth reflects significant internal efficiency gains driven by artificial intelligence.

Parkev expresses concern regarding the company's massive capital expenditures, which are narrowing the gap between cash flow from operations and free cash flow. Parkev notes that free cash flow plummeted to $1.7 billion from $9 billion a year ago as AI-related spending nearly doubled. Despite these pressures, Parkev maintains a bullish outlook, citing a discounted cash flow valuation that places the stock's intrinsic value at $875, far above the current market price of approximately $550.

**META**: Parkev states that Meta Platforms remains a very attractive buy because it trades at a forward P/E of roughly 15.9, which is historically cheap. Parkev argues that the company's 14% increase in ad impressions and 12% increase in price per ad prove that advertisers are seeing a high return on investment. Parkev notes that despite the 6-7% post-earnings price drop, the structural advantages of Meta's platform and its leading position in AI make it a primary candidate for a portfolio addition.

Mentioned Stocks

META
Sentiment: BUYAction: RECOMMENDED

Reasoning: Parkev identifies Meta as an attractive stock because of its low valuation and strong engagement metrics. Parkev mentions that the company's intrinsic value is $875 based on a discounted cash flow model, providing significant upside from the $550 market price. Parkev also notes that the current forward P/E of 15.9 is near the cheapest levels seen in years, making any price drop a potential entry point for investors looking to add to their position.

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