Jan. 22 at 8:01 PM
Thinking about it
$META
Jefferies Reiterates
$META to Buy, PT
$910
5 reasons to buy the pullback:
1. Attractive risk/reward at a 8-turn PE discount vs.
$GOOGL
2. moderate downside to ests with stronger upside potential
3. AI hires set to deliver in ’26
4. Continued momentum from META’s Core Flywheel powered by AI
5. accelerating activation of major incremental rev engines, w/ WhatsApp poised to grow from a
$9B run rate today to
$36B by FY29, plus add'l upside from Threads & Llama/AI. See 65 pg slide deck embedded.
META’s 18% drop since earnings vs AMZN (+4%) & GOOGL (+18%) leaves shares at an 8-turn NTM PE discount to GOOGL, well below historical norms. While this reflects concerns around margin pressure, capex ramp, and AI execution, it also creates meaningful upside if META addresses these headwinds - which we believe is likely."
Analyst: Brent Thill
