The cheapest “Magnificent Seven” artificial intelligence (AI) stock just got even cheaper. That’s why I don’t wait to buy it. | The colorful fool

The cheapest “Magnificent Seven” artificial intelligence (AI) stock just got even cheaper. That’s why I don’t wait to buy it. | The colorful fool

By Adam Spatacco
Publication Date: 2026-04-12 16:36:00

For years, Mark Zuckerberg was one of Big Tech’s most ridiculed CEOs – touting augmented reality (AR) glasses, virtual offices, and a metaverse no one asked for. Then the billionaire entrepreneur turned to artificial intelligence (AI). Metaplatforms (META +0.22%) The stock price tripled and Wall Street crowned him a capital allocation expert.

Now that Meta has become the most attractively valued stock in the Magnificent Seven based on future earnings forecasts, investors are angry again. The irony is poetic. Let’s explore why the reflexive fears surrounding meta are almost certainly wrong.

Data from YCharts.

The real reason for the change in sentiment for Meta shares

Investors are not turning away from Meta because the company’s business is deteriorating. Rather, the panic selling is actually a result of Meta’s aggressive capex ambitions in a potentially recessionary macroeconomic environment. If the Federal Reserve is unsure which direction…