Analyst Names Meta as Top Large-Cap Long Idea Amid AI-Driven Ad Momentum and Attractive Valuation
On July 22, Evercore analyst Mark Mahaney named Meta Platforms (META) his top large-cap long idea. He cited strong advertising demand driven by artificial intelligence and an attractive valuation for the company. Despite these positive outlooks, Meta's stock dropped about 10% after it released a disappointing earnings report one week later. Meta reported second-quarter revenue of $60.8 billion in June 2026, up 28% year over year, with ad impressions increasing by 14%. The company trades at 20 times trailing earnings and is the second-cheapest stock among major tech firms like Alphabet. However, concerns remain due to Meta's significant AI spending, which led to a 55% increase in costs and expenses compared to last year. Mahaney lowered his price target for META from $930 to $820 but still expects the stock to outperform. The company has delayed several key AI projects and lacks a clear business model for monetizing its computing capacity, unlike other hyperscalers.
Tickers: $META