![](\"https:\/\/www.thestreet.com\/.image\/c_fit%2Ch_800%2Cw_1200\/NDA6MDAwMDAwMDAyOTI3NjEw\/the-morgan-stanley-headquarters-in-new-york-us.jpg\")
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After a Brutal Week, Wall Street says it\u2019s time to buy the tech giant. It\u2019s not often a stock drops hard and then immediately gets called a top buy. But that has happened with Meta Platforms (META).<\/p>\n
After a punishing stretch that saw Meta tumble on legal losses, layoffs, and rising concerns about AI spending, one Wall Street giant is stepping in with a bold call. This is after a long bearish streak that saw the stock fall over 12% in just two days. A back-to-back drop of 8% on Thursday, 26th March, and 4% drop to close the week on 27th March.<\/p>\n
After a bearish week, Morgan Stanley now says the selloff has created a rare opportunity.<\/p>\n
In fact, analyst Brian Nowak didn\u2019t hesitate. As per CNBC, he noted.<\/p>\n
\u201cSentiment has troughed\u2026 It\u2019s time to buy META.\u201d<\/p>\n
He lowered the stock\u2019s price target from $825 to $775, suggesting roughly 50% upside from Friday\u2019s close. That\u2019s a strong statement for a stock surrounded by legal battles, layoffs, and massive AI spending.<\/p>\n
The selloff looks ugly, but that\u2019s the point<\/p>\n
As per Yahoo Finance, Meta is down about 12% year-to-date, underperforming the broader market, and essentially flat over the past year.<\/p>\n
And the reasons aren\u2019t hard to find:<\/p>\n
Two major legal rulings, including a $375 million penalty tied to child safety concernsOngoing lawsuits raising questions about social media regulationHundreds of layoffs across key divisionsAggressive AI spending projected at up to $135 billion in 2026<\/p>\n
That\u2019s actually a lot of uncertainty hitting at once, and the market wasn’t late to respond to all of that.<\/p>\n
But now, Morgan Stanley sees it differently. The firm argues that investor fear has peaked, and much of the downside is already priced in. And just as Buffett always says, be fearful when others are greedy, and greedy when others are fearful.<\/p>\n
Photo by Samuel Boivin/NurPhoto via Getty Images<\/p>\n
Valuation quietly becomes bull case<\/p>\n
Here\u2019s where things get interesting. Meta recently traded at roughly 15x its projected 2027 earnings of about $36 per share.<\/p>\n
That\u2019s one standard deviation below its 10-year average. A level reached only a handful of times in the past decade. A 55% discount relative to mega-cap tech peers.<\/p>\n
Related: Morgan Stanley has a stark message on Lockheed Martin stock<\/p>\n
Actually, that kind of valuation compression doesn\u2019t happen often. And historically, it has signaled opportunity.<\/p>\n
Even after trimming his price target from $825 to $775, Nowak still sees around 45% upside from current levels near $536.<\/p>\n
AI spending isn\u2019t the problem<\/p>\n
AI spending could actually be the catalyst. Investors have been skeptical about Meta\u2019s AI strategy. Spending tens of billions before clear returns. As per Yahoo Finance, tech giants like Microsoft, Amazon, Alphabet, and Meta planned to spend about $635 billion in 2026 on AI infrastructure.<\/p>\n
Looking at Meta, they now plan to spend $10 billion on its AI data center in El Paso, Texas, up from a prior commitment of $1.5 billion.<\/p>\n
\u201cSince breaking ground last year, we have been proud to call El Paso home and are committed to being a good neighbor.\u201d The company said in a statement on March 26, 2026.<\/p>\n
More Tech Stocks:<\/p>\n
Morgan Stanley sets jaw-dropping Micron price target after eventNvidia\u2019s China chip problem isn\u2019t what most investors thinkQuantum Computing makes $110 million move nobody saw coming<\/p>\n
But Morgan Stanley flips that narrative.<\/p>\n
The firm believes Meta is laying the groundwork for a new ecosystem. One centered around what it calls \u201cMetaClaw.\u201d This potential AI system could combine Meta AI, the Manus agent, and the Moltbook platform<\/p>\n
And what’s the goal? To create a personal AI assistant that can curate content, handle end-to-end shopping, and interact across Messenger, Instagram, and WhatsApp.<\/p>\n
All without leaving Meta\u2019s ecosystem. With over 250 million businesses on its platforms, Meta already has the infrastructure to monetize this at scale.<\/p>\n
If it works, it will be a new revenue engine and not just an upgrade.<\/p>\n
Meta still has strong fundamentals<\/p>\n
Lost in the noise is one key fact: Meta\u2019s core business is still performing.<\/p>\n
In its Q4 2025 report on\u00a0 Jan. 28, 2026, the company delivered:<\/p>\n
Revenue: $59.89 billion, up 24% year over year, beating the estimated $58.4 billionEPS: $8.88, beating expectations of $8.19Net income: $22.77 billion, 9% increase year-over-year.Operating margin: 41%<\/p>\n
Looking at its family apps (Facebook, Instagram, WhatsApp), revenue was $58.94 billion. A 25% increase YoY. Daily active users also surged, reaching 3.58 billion, a 7% increase year-over-year.<\/p>\n
Ad revenue remains dominant, accounting for nearly all of total sales. And engagement is still growing, with 3.58 billion daily active users across its platforms. That\u2019s not a struggling business. It\u2019s a highly profitable one investing aggressively in its next phase.<\/p>\n
Cost cuts could also add a bullish layer<\/p>\n
There\u2019s another lever investors are watching. Efficiency. As per CNBC,\u00a0 Meta could cut up to 20% of its workforce, potentially saving $3 billion to $10 billion annually.<\/p>\n
According to Morgan Stanley, that alone could add over $1 to 2027 earnings per share. That\u2019s not insignificant. It also creates a cushion if ad markets weaken.<\/p>\n
The chart also says this level matters<\/p>\n
Technically, looking at the weekly chart, Meta is at a Point of Interest (POI). Meta recently traded at roughly 34% below its all-time high of $796, reached in August 2025. Since then, it has mostly been in a correction mode.<\/p>\n
Right now, it\u2019s sitting in a key zone. A support zone ranging from around $525 to $550. A long-term ascending trendline in place since 2024 also offers another confluence.<\/p>\n
Meta Weekly Chart Via Trading View<\/p>\n
So what happens next? A rejection at the current level could trigger a move higher. A breakdown could also send the stock toward the $480 support level. So, merging it with Morgan Stanley\u2019s buy call, I would be waiting for just one thing before going long. A\u00a0 bullish confirmation at the current level.<\/p>\n
Looking forward, Meta\u2019s next earnings report is expected on April 29, 2026. That will also offer a picture of what the stock may perform going forward.\u00a0<\/p>\n
Related: Morgan Stanley resets bets on defense stocks amid war<\/p>\n
#Morgan #Stanley #time #buy #Californiabased #tech #giant<\/p>\n","protected":false},"excerpt":{"rendered":"
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