Jun. 29 at 7:09 PM
$META
The valuation gap here is starting to look stretched to the downside.
$META is currently trading at ~16.4x forward earnings - levels that sit near historical lows for a company still compounding revenue at ~23% YoY.
On a relative basis, it’s now trading cheaper than
$AAPL,
$AMZN,
$MSFT, and even legacy multiple names like
$CSCO, despite materially stronger growth dynamics.
That’s the core disconnect: price is compressing toward “value” multiples while the business is still behaving like a high-growth compounder.
Market narrative is leaning cautious, but the fundamentals haven’t slowed at the same pace.
This is exactly the type of divergence that forces re-rating cycles when sentiment eventually flips.
