4 Reasons to Buy Meta Platforms Stock
2026-10-01 15:25
•Prosper Junior Bakiny •The Motley Fool
••••• • Axe Cap view
Why Meta's AI Push Matters for JSE Investors
Meta's new AI ventures could reshape tech exposure via the rand and Prosus, despite lingering global risks.
Meta Platforms has clawed back 27% in a month, driven by AI products like Muse, downloaded 730,000 times in just five days. Muse and their Enterprise AI platform hint at fresh revenue streams well beyond advertising. This matters for South African investors mainly through Prosus, which holds a large Meta stake. The legal cloud finally lifting—Meta’s settling major lawsuits for $18 billion annually—also takes a weight off its valuation. At 22.1 times forward earnings, it's not dirt cheap but reasonably priced if AI growth offsets capex costs. Our interest lies in watching Prosus closely, as its Meta exposure makes it a proxy for this recovery and AI pivot. The wildcard is US regulatory scrutiny or a tech sell-off, which could easily knock both stocks back. Rand traders should keep an eye on USD/ZAR too; a firmer rand would lift domestic tech investor confidence but, for now, macro risks remain elevated. this is just our opinion and not financial advice
Buy Prosus to play Meta's AI turnaround indirectly while watching USD/ZAR for confirmation of rand strength. Avoid fresh buys in pure SA tech until global tech volatility settles.
- Prosus
- USD/ZAR
- US regulatory pressures on big tech
- Renewed global tech sell-off impacting Prosus and Meta valuations
6/10
Meta Platforms has rebounded 27% over the past four weeks after months of underperformance. The article highlights four reasons to invest: (1) Muse, its personalized AI agent, became an instant hit with 730,000 downloads in five days and offers monetization opportunities; (2) Meta Enterprise Platform launches AI tools for businesses, leveraging existing relationships; (3) Meta settled major lawsuits for approximately $18 billion annually over a decade, reducing legal risk; (4) The stock trades at 22.1x forward earnings, only slightly above the tech sector average, suggesting reasonable valuation despite recent gains.
Our take is based on reporting first published by The Motley Fool.