Why Meta Might Be the Only "Mag 7" Stock Worth Buying at Current Prices

The “Magnificent Seven” — Nvidia, Apple, Microsoft, Alphabet, Amazon, Meta, and Tesla — have basically become the market. But here’s the thing: most of them are trading at eye-watering multiples right now.

The Valuation Reality Check

If you strip out Tesla (which is literally 180x next year’s earnings, making the chart look ridiculous), the rest of the Mag 7 are clustering around 25-30x forward P/E. That’s not cheap by historical standards. Nvidia, despite being the largest company by market cap, isn’t even the priciest in the group — but yeah, the whole cohort is expensive.

Except one.

Meta’s the Oddball (In a Good Way)

Meta’s been absolutely hammered. The stock got crushed after Q3 earnings because investors freaked out about one thing: the company is now taking on debt to fund its massive AI infrastructure spending. We’re talking tens of billions per quarter.

Here’s why that matters: Meta used to fund AI buildouts with operating cash flow. Now it’s going into the red for it. That spooked Wall Street.

But look at the actual business. Revenue up 26% YoY, and that growth is being turbocharged by AI improvements across its platforms. The company’s core social media business is still cranking.

The Metaverse Lessons Apply Here

Obviously, people are drawing parallels to the metaverse bet — the one where Zuckerberg poured tens of billions into something that never really happened. And yeah, that could happen again with AI.

But here’s the plot twist: the moment Meta stopped hemorrhaging cash on metaverse infrastructure, the money printer turned back on. The company proved it can pivot and return to profitability when needed.

Same story could play out with AI. The difference is timing. If you can hold this stock for 5+ years and ignore the noise, Meta could outperform the broader market. The business is genuinely strong right now; it’s just the spending strategy that’s making people nervous.

The Bottom Line

Meta’s the cheapest of the Mag 7 on a forward basis, and for good reason — the market’s pricing in execution risk on AI. But if Meta pulls off even half of what it’s betting on, current prices could look like a steal in a few years. The catch: you need patience and conviction. If you can’t stomach the volatility and the next 24 months of hand-wringing about AI burn rates, Nvidia might be the safer play — at least it’s already profiting from the AI boom.

The real question isn’t whether Meta will spend on AI. It’s whether you believe the company will eventually make that spending pay off.