Meta Platforms trades at a 36% discount to hyperscaler peers despite strong stock performance.
ByAinvest
Saturday, Jan 17, 2026 8:09 pm ET1min read
META--
Meta Platforms trades at a P/E of 21x, 36% lower than hyperscaler peers at 33x. The company derives 97.7% of revenue from advertising, while Reality Labs has accumulated losses of $70B to $73B since 2021. Free cash flow is projected to drop 53% in 2026 as capex rises above $100B. CEO Mark Zuckerberg's bold spending bets add risk, contributing to the discount.

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