Meta Platforms Inc (NASDAQ:META) shares are trading lower Monday afternoon as the company navigates a series of headwinds related to its artificial intelligence strategy. Here’s what investors need to know.
What To Know: The stock is under pressure following reports that the company faces congressional scrutiny over a leaked internal AI rulebook that allegedly permitted chatbots to engage in “romantic or sensual” conversations with children.
The news prompted U.S. Senators Josh Hawley and Marsha Blackburn to call for an immediate investigation, escalating regulatory and reputational risks for the social media giant.
Adding to investor concerns are signs of internal instability and intense competition within its crucial AI division. Meta is reportedly planning its fourth major AI restructuring in just six months as it battles rivals in a fierce talent war.
This operational upheaval is compounded by controversy surrounding its approach to AI bias. Following a lawsuit over its AI falsely linking an activist to the Jan. 6 Capitol riot, Meta settled the case and brought in the activist, Robby Starbuck, as an advisor on political bias, a move that has drawn public criticism.
These mounting challenges appear to be overshadowing the company’s strong fundamental performance. As a core member of the “Magnificent Seven,” Meta’s earnings have recently grown at a pace three times faster than the rest of the S&P 500.
However, the combination of regulatory threats and strategic controversies surrounding its costly AI push is weighing on investor sentiment Monday afternoon.
Benzinga Edge Rankings: According to Benzinga Edge stock rankings, Meta Platforms showcases a profile of a high-caliber company trading at a premium.
The company earns an exceptional Quality score of 92.59, indicating strong financial health and business fundamentals. It also scores impressively on both Momentum (83.04) and Growth (83.60), reflecting positive stock performance trends and a rapid pace of expansion.
In stark contrast, Meta receives a low Value score of 24.91, which suggests that, according to these metrics, the stock is considered expensive and may be trading at a high price multiple relative to its underlying earnings and assets.
Price Action: According to data from Benzinga Pro, META shares are trading lower by 2.50% to $765.60 Monday afternoon. The stock has a 52-week high of $796.25 and a 52-week low of $479.80.
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How To Buy META Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Meta Platforms’ case, it is in the Communication Services sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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