Meta Platforms’ Valuation Gap Within the Magnificent Seven
Meta Platforms (META) continues to deliver strong financial performance, with Q2 2025 revenue climbing 22% year-over-year to $47.5 billion. The company's advertising-driven model benefits from robust marketer demand and AI-powered ad innovations across Facebook, Instagram, and Threads. Yet structural vulnerabilities persist.
Unlike cloud-computing peers in the elite tech cohort, Meta remains hostage to advertising cycles and platform distribution risks. This inherent volatility explains its discounted P/E multiple in the 20s—a valuation gap that reflects both execution excellence and existential challenges in the attention economy.