META and MSFT are trading at 21 and 25 PE respectively while having at least 15%+ revenue and earnings growth. Time to buy?
u/Criticall16 ·
Reddit — r/StockMarket
· April 30, 2026 at 13:53
· ⬆ 28 pts
· 💬 21 comments
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META and MSFT are trading at 21 and 25 PE respectively while having at least 15%+ revenue and earnings growth. Time to buy?
Edit: The PE here is forward not trailing pe.
Meta just reported and for the 3rd time in a row its down after earnings. The company reported 33% overall y/y revenue growth the company is expected to do 125+ billion in revenue this year. Q1 2026 was $10.44 EPS, assuming earnings growth slows in the year at $30 yearly EPS the stock is trading around 20-21 times. Paying this much for a company that owns products used by 3.5 billion people seems reasonable to me.
Edit: All are fairly valid points. However, based on the numbers alone of revenue growth and earnings growth as well as past performance. I feel this is a buying opportunity. We can assume that due to all these issues it won’t trade at the premium multiples like other mag7 however a 25 PE is reasonable for META given the revenue growth and free cash flow. $750 is my price target.
Also, apart from social media and sharing alone, Facebook has become a huge marketplace platform. FB Marketplace is the go to place to buy used stuff where I live. Same goes for WA though it doesn’t seem monitizable there are many businesses using WA which can be monitized. And off course reels which has replaced tik tok in markets where tik tok has been banned.
MSFT on the other hand is expected to do 325 billion in revenue and had an EPS of $4.27 at $16 EPS for the year the stock is trading at roughly 25 times. Expensive than META but I find it hard to believe that Microsoft office is getting replaced anytime soon. Even if it does, Azure growth is still there and Azure cloud will benefit from increased AI used.
In fact, I would like to argue that MSFT software is even more valuable now than before due to security issues. Linux being open source has way more vulnerabilities than Microsoft Windows same will be true for other open source or Microsoft office substitute softwares. Lastly, substitutes in fact very good substitutes of Microsoft office in the form of LibreOffice have existed for a long time now but companies haven’t switched to them indicating the moat remains.
Risk reward to me is in favour of buying these two. Critique welcomed.