META's stock price has fallen 18% in a month, but this drop seems a bit unjust.

The increase in AI infrastructure spending is the main reason—Meta just raised its CapEx guidance for next year from 66-72 billion to 70-72 billion. However, looking closely, this money invested in AI still has returns:

• Threads daily active users increased by 10%, short video Reels annual revenue exceeded 50 billion.
• The annual revenue of AI advertising tools has exceeded 60 billion, and the unit price has increased by 10% year-on-year.
• Meta AI users exceed 1 billion, and B2B information interaction volume also exceeds 1 billion.

The current issue is that the valuation is a bit expensive—P/S ratio of 6.63X, significantly higher than Amazon(3.18X) and Snap(2.13X). Additionally, the advertising market is highly competitive, with no particularly stimulating catalysts in the short term.

The recommendation given by the analysis institution is to HOLD, waiting for a better entry point. However, in the long term, Meta's layout in the AI + advertising sector is still imaginative.