Investor Hari Ramachandra highlights Meta’s 41% operating margin and $46B free cash flow as key drivers for potential gains.
Meta Platforms (NASDAQ:META) has retreated 20% from its peak despite posting a 41% operating margin and $46 billion in free cash flow for 2025. The stock closed at $577.22 on June 18, 2026, down 12.4% year-to-date and 16.77% over the past year.
In Q1 2026, Meta reported a 33% increase in advertising revenue to $55.02 billion, driven by a 19% rise in ad impressions and a 12% climb in average ad prices. The company’s 3.56 billion daily active users are seen as a defensible advantage as AI models commoditize, according to investor Hari Ramachandra.
Ramachandra called Meta ‘one of the two best advertising machines ever built,’ citing an 18.5% revenue CAGR over the last five years. However, concerns persist over potential capex reaching $145 billion in 2026 due to faster depreciation of AI chips.