3 Reasons to Buy Meta Platforms Stock Before 2027

Three compelling reasons to consider purchasing Meta Platforms (META) stock prior to 2027 include the company's ambitious goal of developing personal superintelligence, its massive user base, and the potential for continued growth in AI-driven ad revenue. CEO Mark Zuckerberg envisions a future where every individual possesses their own artificial intelligence (AI) agent, an application that automates tasks for users.

The recent release of Muse, Meta's innovative personal agent, exemplifies this vision and demonstrates the company's ability to convert its substantial AI investments into user-centric products. This strategic move has the potential to open new avenues for revenue diversification beyond traditional advertising.

Meta Platforms maintains one of the largest digital audiences globally, with more than 3.6 billion people engaging with its family of apps daily on average. This enormous user base presents a valuable opportunity to monetize through various channels, including the recently launched Muse. Early adoption of Muse has been impressive, with over 10 million installs within the first six weeks, accounting for shopping-related activities being its most common use.

Management anticipates Muse to eventually generate higher revenue per user than Meta's existing applications due to its unique usage patterns. Furthermore, Meta's advertising business is poised for growth as well. The AI-driven ranking and recommendation models, such as GEM and Andromeda, have already contributed to increased ad conversions and higher average prices per ad.

In Q3, these upgrades led to a 10% increase in ad impressions and a 14% rise in average ad price, resulting in total revenue growth of 26% to nearly $65 billion. Management forecasts fourth-quarter revenue of $73 billion to $76 billion, surpassing the top end of management's guidance.

Despite Meta's revenue growth, the company still primarily generates income from advertising, and AI is an integral part of this growth engine. The strong performance of Muse and robust revenue growth demonstrate the benefits of Meta's capital expenditures, which have reportedly amounted to $135 billion to $145 billion for 2026.

While these investments have negatively impacted the stock price this year, the success of Muse and the overall revenue growth suggest that the stock could be a valuable addition to investors' portfolios heading into the new year. The company's strong operating margins, driven by AI spending, indicate that Meta is well-positioned for long-term shareholder returns.

With a forward P/E multiple of 21.5 on 2026 estimates and 18.9 for next year, Meta's stock appears to be reasonably valued relative to its growth prospects. Assuming earnings grow at the expected 19% annual rate, the stock could more than double by 2031, potentially delivering substantial long-term returns.