Author argues Meta is undervalued due to a $15.9B accounting charge and expects FCF growth from AI to drive the stock to a $1150 price target this year.
META — LONG The author argues Meta is undervalued today partly due to a $15.9 billion accounting charge taken in Q3 2025, presenting a good entry opportunity with a potential 71%+ return to a $1150 price target this year. The thesis rests on expected free cash flow growth starting in 2027 as AI spending begins to pay off through AI products and services, with 2026 FCF estimated at $55 billion and 2028 at $76 billion. Key catalysts include improving Instagram/Facebook engagement and ad returns from AI, plus optionality from Threads, WhatsApp, glasses, and subscriptions not baked into numbers. Main risks are that the street may dislike near-term FCF spend on chips and data centers, and that a new social media competitor could emerge.
Meta is still undervalued today and part of it is the accounting charge of $15.9 bil they have done in Q3 2025.
This Reddit post, published January 27, 2026, features u/Really0riginal discussing META. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: u/Really0riginal · Tickers: META