Meta Trades at a Discount to Magnificent Seven After $1 Trillion AI Rally
- Valuation is second-cheapest in Magnificent Seven group
- Investors see room for payoff from investments in AI
The Meta headquarters in Menlo Park, California, US.
Photographer: David Paul Morris/BloombergMeta Platforms Inc.’s record-breaking, artificial intelligence-fueled rally has added $1 trillion in market value since its darkest days of 2022, and yet by some perspectives it’s still trading at a discount.
Its shares traded at 24 times estimated earnings early Wednesday, roughly in line with their 10-year average and just below the 25 times of the Nasdaq 100. Among the Magnificent Seven group of big tech companies, only Alphabet Inc., with a multiple of about 21, is cheaper.