Meta Platforms reported Q4 revenue of $59.9 billion, a 24% year-over-year increase driven by its core digital advertising operations. Ad impressions rose 18% across Facebook, Instagram and Messenger, while average price per ad increased 6%. Reels watch time climbed over 30%, underscoring strong user engagement. These trends reflect improvements in AI-driven ranking and attribution systems that optimize ad placement and measurement, delivering higher click-through rates and conversion metrics that have attracted increased advertiser budgets.

The company announced plans to allocate between $115 billion and $135 billion in capital expenditures for fiscal 2026, with a substantial portion earmarked for AI infrastructure—nearly doubling its previous year’s AI investment. Management emphasized that every dollar spent on training and deploying AI models directly enhances ad targeting and creative tools, generating immediate monetization. Following these disclosures, Meta’s shares surged more than 10% in a single trading session, signaling that the market is rewarding demonstrable near-term returns rather than long-range infrastructure promises.

Currently trading below the broader S&P 500 multiple and at a discount to its Magnificent Seven peers, Meta Platforms offers an attractive entry point for long-term investors. Over the past decade, the stock has returned approximately 577%, outperforming many large-cap technology names despite facing privacy scandals and regulatory scrutiny. With a forward price-to-earnings ratio substantially lower than the group median, the company’s resilient revenue growth and improving ad efficiency suggest potential for multiple expansion as AI-driven enhancements continue to bolster margins.

U.S. authorities have launched an inquiry into allegations that Meta can access end-to-end encrypted WhatsApp messages, a claim the company has vehemently denied as “categorically false and absurd.” The lawsuit, filed by Quinn Emanuel Urquhart & Sullivan, cites whistleblowers from five countries but has yet to produce concrete technical evidence. Meta has countered by seeking sanctions against the law firm, asserting the complaint is designed to support an unrelated spyware manufacturer. While the probe remains at an early stage, any adverse regulatory findings could trigger litigation costs and reputational damage, injecting legal risk into the investment thesis.