Published: Jan. 22, 2026 at 10:22 a.m. ET
The tech stocks known as the Magnificent Seven have fallen out of favor, and Meta Platforms has been one of the weakest performers of that bunch, but some on Wall Street now believe the negative sentiment has gone too far.
Shares of Meta META have fallen 18% since the company last reported earnings at the end of October, while shares of Alphabet GOOGL GOOG and Amazon.com AMZN have risen 18% and 4%, respectively, since those companies’ last earnings reports. That divergence has left Meta trading at a massive forward price-to-earnings discount relative to Alphabet. Meta’s stock trades at 20.1x forward earnings, compared with 28.3x for Alphabet’s, and that discount is much larger than “historical norms,” Jefferies analyst Brent Thill wrote in a Thursday note.
