Is Meta Platforms Stock a Buy as Revenue Continues to Soar?
2026-10-23 10:41
•Geoffrey Seiler •The Motley Fool
••••• • Axe Cap view
Meta Platforms: AI Fuels Growth but South African Link Remains Distant
Meta’s strong Q3 results highlight AI-driven revenue gains, but local investors should watch USD/ZAR dynamics before diving in.
Meta Platforms reported a solid 26% revenue jump, thanks largely to its AI-powered ad business and rapid Muse AI agent adoption. This kind of growth rarity does catch the eye, especially with the stock trading at a reasonable forward P/E of 19. Yet, for South African investors, the question isn’t just about Meta’s U.S. dominance but how currency moves might squeeze returns. The rand remains vulnerable; a weaker USD/ZAR could erode gains from global tech bets like Meta. Also, heavy spending on AI infrastructure is a bet on future growth—if the AI hype fades or faces regulation, profits might disappoint. In local terms, Meta’s rise doesn’t have a perfect JSE counterpart. Prosus and Naspers offer some tech exposure but trade differently and have their own risks. For now, Meta looks promising, but keep a close eye on rand volatility as your entry price could hinge on it. this is just our opinion and not financial advice
Watch USD/ZAR before buying Meta shares via offshore exposure; consider trimming if the rand weakens notably. For local tech exposure, lean cautiously on Prosus, but don’t expect a perfect two-way play.
- META
- USD/ZAR
- Prosus
- Rand weakness reducing offshore returns
- AI regulation or technological disruption hitting Meta’s growth
5/10
Meta Platforms reported strong Q3 2026 earnings with 26% revenue growth to $64.6 billion, beating consensus estimates. The company's AI-driven advertising business continues to thrive, with advertising revenue jumping 26%. Meta's new Muse AI agents have attracted over 10 million users in the U.S. and Canada within six weeks, opening a new revenue stream. Despite increased capex spending on AI infrastructure ($135-145 billion), the stock is considered attractively valued at a forward P/E of 19, making it a solid buy heading into 2027.
Our take is based on reporting first published by The Motley Fool.