META Stock Is Efficient and Is “One of the Most Compelling Mag 7 Stocks,” Prominent Investor Says

Larry Ramer

Tue, May 6, 2025, 11:48 AM 2 min read

Meta Platforms (META) CEO Mark Zuckerberg continues to focus on keeping the company efficient, while the firm's growth outlook is strong, Jenny Van Leeuwen Harrington, the CEO of Gilman Hill Asset Management, said on CNBC recently

Suggesting that Meta Platforms Inc. (META)'s valuation is attractive, Harrington called the name "one of the most compelling" Mag 7 stocks.

Consistent Efficiency, Strong Growth, and an Attractive Valuation

Even as Meta Platforms (META) stock has rallied sharply in the last few years, Zuckerberg has kept its costs under control, Harrington said.

Meanwhile, the tech giant is poised to increase its earnings at an annual rate of 15%-20%, according to Harrington.  Further, it's changing hands at a price-to-earnings ratio of about 22 times, which is fairly low, given its strong growth outlook.

"What..really differentiates Meta..is that (its) free cash flow generation is still high," Harrington added.

Finally, the investor noted that the tech giant's operating margin rose to 41% last quarter versus 38% during the same period a year earlier.

The Recent Price Action of META Stock

In the last month, the shares have gained 16%, while in the last three months, they fell 14%.

While we acknowledge the potential of META, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than META but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey