Meta proves that strong earnings gains can propel market-beating stock returns.
The company plans to spend $125 billion to $145 billion on capital expenditures this year, a huge figure that could be driving market concerns.
Meta Platforms (NASDAQ: META) isn't having the best year thus far. Its share price is down 8% in 2026 (as of June 6). And it's 23% off its peak from last August.
The volatility is nothing new, as market sentiment is constantly changing. Investors worried about the recent performance should zoom out.
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If you invested $10,000 in this "Magnificent Seven" stock 10 years ago, here's how much you'd have today.
Image source: The Motley Fool.
Over the past decade, Meta Platforms has produced a total return of 434%, outpacing the S&P 500 index. Had you bought $10,000 worth of shares in early June 2016, you'd have $53,380 today. Impressive earnings growth propelled the stock price.
Across its social media apps, Meta has a mind-boggling 3.56 billion monthly active users. Not only does this allow the company to collect massive amounts of data that lead to constantly improving recommendation algorithms and advertising capabilities, but it also supports a powerful network effect.
The investment community might be concerned, however, about the level of spending that's going on. Meta's capital expenditures are projected to total $125 billion to $145 billion in 2026, as the business looks to expand its technical infrastructure to power its artificial intelligence ambitions.
Nonetheless, the stock currently trades at a price-to-earnings ratio of 22.8. This looks like a very attractive opportunity to buy an elite business.
Before you buy stock in Meta Platforms, consider this:
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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy.