META and MSFT are trading at 21 and 25 PE respectively while having at least 15%+ revenue and earnings growth. Time to buy?
Edit: The PE here is forward not trailing pe.
Meta just reported and for the 3rd time in a row its down after earnings. The company reported 33% overall y/y revenue growth the company is expected to do 125+ billion in revenue this year. Q1 2026 was $10.44 EPS, assuming earnings growth slows in the year at $30 yearly EPS the stock is trading around 20-21 times. Paying this much for a company that owns products used by 3.5 billion people seems reasonable to me.
Edit: All are fairly valid points. However, based on the numbers alone of revenue growth and earnings growth as well as past performance. I feel this is a buying opportunity. We can assume that due to all these issues it won’t trade at the premium multiples like other mag7 however a 25 PE is reasonable for META given the revenue growth and free cash flow.…