1 Reason to Buy Meta Stock Now and Hold for the Long Term
2026-10-26 19:00
•John Ballard •The Motley Fool
••••• • Axe Cap view
Why Meta Could Reward Patient South African Investors
Meta’s push into paid messaging and AI tools offers a fresh growth angle, making its current valuation intriguing despite heavy spending.
Meta Platforms isn’t just about ads anymore. With over 3.6 billion daily users and half a billion small businesses using its apps, Meta is betting on new revenue streams beyond traditional advertising. Services like WhatsApp paid messaging and its Meta One subscriptions are gaining traction, growing faster than the rest of the business. AI tools aimed at small businesses are expected to meaningfully contribute from 2027 onward. The stock’s recent 10% pullback, alongside the $145 billion capital expenditure plan, might spook some investors. Yet, at around 19 times projected 2027 earnings, Meta is roughly in line with the broader US market, suggesting some value for the long term. For South African investors, the bigger question is how this plays through the rand and local appetite for global tech exposure. The USD/ZAR remains a useful hedge here, but considering the limited direct JSE equivalent, ground-level exposure remains tricky. If tech disruption in AI pays off, Meta could outpace expectations. The risk? Heavy capex and execution challenges might delay returns and test patience. this is just our opinion and not financial advice
Buy Meta stock on dips for long-term exposure to AI and digital services growth, using USD/ZAR hedges where possible to manage currency risk. Avoid large overbetting until these new business lines prove sustainable.
- META
- USD/ZAR
- Capital expenditure may delay profitability
- Currency volatility can increase investment risk for rand investors
6/10
Meta Platforms is diversifying beyond advertising with new revenue streams including WhatsApp paid messaging, Meta One subscriptions (15M+ subscriptions), and AI business tools expected to contribute meaningfully starting in 2027. With 3.6B daily users and 500M small businesses using its apps, Meta trades at 19x 2027 earnings estimates, in line with S&P 500 averages, presenting a buying opportunity despite recent 10% stock decline and heavy $145B capital expenditure plans.
Our take is based on reporting first published by The Motley Fool.