This Dirt Cheap "Magnificent Seven" Stock May Be a Once-in-a-Decade Buying Opportunity Right Now. | The Motley Fool

Meta Platforms operates Facebook, Instagram, and WhatsApp, reaching more than 3.5 billion daily users worldwide. Advertising across these platforms drives most of Meta’s revenue, linking user engagement to advertiser demand. Meta has delivered strong earnings growth and launched a dividend in 2024, supporting both shareholder returns and continued investment. Meta’s role in the AI story comes from heavy AI spending aimed at applying AI to social media experiences and the advertising process, with potential expansion into additional products and services. The recent market pullback and rising earnings have reduced valuations for the Magnificent Seven, with Meta described as the cheapest and potentially a once-in-a-decade buying opportunity.

"The Magnificent Seven tech stocks led the S&P 500 to enormous gains over the past few years as investors rushed into the latest growth opportunity: artificial intelligence (AI). Each of these players is involved in the technology at a certain level, offering investors exposure to this new growth opportunity. At the same time, these companies also offer investors some safety -- they are all well-established, profitable tech giants."

"A company you may know well The company I'm talking about is one you might come in contact with daily if you're a user of Facebook, Instagram, or WhatsApp. It's Meta Platforms , owner of these popular social media apps. More than 3.5 billion people globally use these apps on a daily basis -- and this is important because advertising across the platform makes up most of Meta's revenue. So, the more people use these apps regularly, the more advertisers will rush there to contact them, the target audience."

"All of this has built a long track record of earnings growth for Meta. The company has been so successful that it even launched a dividend in 2024 -- so it can afford to reward shareholders and invest in growth. That's fantastic, as it's a combination that may please both cautious and bold investors."

"So, where does Meta fit into the AI story? The company has been heavily investing in AI over the past several years, with the idea of applying AI to its social media apps and the advertising process, as well as potentially developing other products and services down the road. Meta has built out data"

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