Why I Just Bought This Magnificent AI Stock Hand Over Fist

By Justin Pope – Mar 30, 2026 at 6:15AM ESTKey PointsHefty AI spending and a recent lawsuit loss have been weighing on Meta Platforms' shares.Ironically, AI spending is good for Meta, and the lawsuit loss may actually benefit the company.It's difficult to pass on a world-class company like Meta at these share price levels.Shares of Meta Platforms (META 3.91%) have fallen 30% from their high. Such declines are rare for the social media giant, occurring only a handful of times in the past 10 years. I must confess, I bought the dip hand over fist. The stock's tumble probably doesn't boil down to one thing; many Magnificent Seven stocks have stumbled from their highs. Investors may be concerned about the company's aggressive spending on artificial intelligence (AI). If that weren't enough, Meta just lost a court battle that could open the door for hefty damages in future litigation. Here's why I hit the buy button on Meta stock, despite all of that. Image source: The Motley Fool. Meta is an obvious AI winner While many cloud companies are spending like crazy on AI to build new businesses, Meta is spending on AI to strengthen its own. OK, I'll exclude Reality Labs for a moment, which has been a genuine cash inferno. AI is a positive tailwind for several aspects of digital advertising, Meta's bread and butter. AI is automating ad creation and improving pricing by matching ads to their ideal target audiences. As a result, Meta's operating cash flow has surged since 2022, which CEO Mark Zuckerberg is pumping right back into the company for AI. Plenty of room for future monetization Meta still has an embarrassment of riches in terms of future monetization opportunities. There is additional e-commerce potential in Facebook and Instagram. Meanwhile, Meta has barely started leaning into advertisements on WhatsApp and Threads. The company's daily active app users reached 3.58 billion in December 2025, up 7% year over year. It's remarkable that Meta's audience continues to grow, as it has from such a large base, and it represents a vast distribution network for any product or service Meta launches. ExpandNASDAQ: METAMeta PlatformsToday's Change(-3.91%) $-21.40Current Price$526.14Key Data PointsMarket Cap$1.3TDay's Range$520.27 - $543.5952wk Range$479.80 - $796.25Volume7.9KAvg Vol15MGross Margin82.00%Dividend Yield0.40% Should investors fear Meta's recent courtroom defeat? Just recently, a jury ruled against Meta Platforms in a lawsuit over social media safety for young users. It's a potential landmark moment because it could set a precedent holding social media companies liable for how young people use their platforms, opening the door to additional litigation and future damages. While this could cause financial harm to Meta, it may actually strengthen the company's long-term competitive positioning. Much as tobacco litigation did decades ago, the litigation could ultimately stifle new competition by making it riskier and more difficult to build new social media apps. Putting it all together Right now, Meta stock is trading at around $560 per share, less than 19 times its 2026 earnings estimates. That's a compelling value for one of the world's most powerful companies, especially given analyst estimates of 22% annualized long-term earnings growth. Meta Platforms seems like a lock as one of AI's biggest long-term winners. Despite the recent drama and falling stock price, this will likely be a tremendous buying opportunity in hindsight.Read NextMar 30, 2026 •By Sean WilliamsStatistically, These 2 "Magnificent Seven" Stocks Are Genius Buys, Based on a Time-Tested Valuation MetricMar 28, 2026 •By Motley Fool StaffWho in Big Tech Is Ready for Agentic AI?Mar 28, 2026 •By Adria CiminoThis AI Giant Aims to Reach $9 Trillion in Market Cap. Is the Stock a Buy?Mar 27, 2026 •By Jeremy BowmanMeta Plunges on Jury Verdict. Here's What It Means for InvestorsMar 27, 2026 •By Parkev Tatevosian, CFAUnfortunate News for Meta Stock InvestorsMar 27, 2026 •By Keith Noonan1 Reason Meta's AI Spending Spree Won't Slow Down in 2026About the AuthorJustin Pope is a contributing Motley Fool stock market analyst covering information technology, consumer discretionary, consumer staples, and industrials. Prior to The Motley Fool, Justin was a business manager for an industrial company.TMFbeardedFiStocks MentionedMeta PlatformsNASDAQ: META$526.14(-3.91%)-$21.40*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.