$Meta Platforms(META.US)I entered Meta around $543 as its valuation became more attractive, with its forward P/E falling to around 19x as compared to 25x-29x one year ago. Wall Street analysts also maintained an average 12-month price target of approximately $750, implying around 30% upside from current levels.

I saw this as an opportunity to gain exposure to Meta’s strong advertising business while positioning for continued AI-driven growth. Despite Meta consistently increasing its AI investments, Nvidia’s latest earnings and strong guidance reinforced my view that AI infrastructure spending is likely to remain strong, at least over the next few quarters.

The main takeaway for investing in Meta is that its core advertising business generates massive cash flows (it is very expensive for someone like me who does social media marketing), but heavy spending on AI and recent legal settlements require careful monitoring of Meta’s profit margins.