Investor Argues Meta's AI Business is Heavily Undervalued, Predicts Two New Major Revenue Verticals
RihardJarc · x · 2026-08-04
Long-term investor Rihard Jarc argues that the market has consistently discounted Meta's long-term value. Although Meta is currently trading at 18x forward P/E, the market is assigning zero value to its AI business outside of core social media ads.
He suggests that even at raw value based on GW capacity price, Meta's AI business should account for 20% to 30% of its current market cap. Furthermore, reading through Meta's earnings reports reveals that the company will soon rely less on ad revenue, generating at least two massive new verticals: e-commerce transaction revenue and AI agent revenue for businesses and creators via platforms like WhatsApp.
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