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P Rao's avatar

I've been hearing a lot about why $META is below fair price, but have not come across a great explanation from other folks. What makes it below fair price for you?

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The Few Bets That Matter's avatar

I've detailed it at length here:

https://www.wealthyreadings.com/p/meta-q3-25-detailed-earning-review

Bottom line: the market is pricing in margin cmpressions due to depreciation (not change to EBIT though) plus the fact that Meta won't stop spending and is now using debt to do so, meaning longer and harder margins compressions.

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