After strong quarterly results, Meta shares fell 7% amid concerns about massive artificial intelligence spending. The analysis weighs two risks, a potential Class C share issuance that could dilute existing shareholders and a $25 billion penalty related to Cambridge Analytica, against two reasons to buy: improving core-business performance and a modest valuation of about 19 times estimated consensus earnings for 2027, compared with 18.5 times for the S&P 500. Meta Superintelligence Labs is presented as the decisive factor favoring bullish investors because the market is not yet accounting for its potential multibillion-dollar revenue streams. The author therefore views the current decline as an opportunity to buy Meta despite the risk of further near-term downside.
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