Magnificent Seven stocks are supposed to be the market’s premier performers, particularly in the realm of technology and innovation. If that’s the case, then how will Meta Platforms (NASDAQ:META | META Price Prediction) stock measure up against other tech titans in 2026?
After pouring so much capital into artificial intelligence (AI) as well as its Reality Labs metaverse business, Meta Platforms has drawn scrutiny from its critics. Indeed, some skeptics might claim that Meta Platforms hasn’t earned its title as a Magnificent Seven member.
Yet, there are two sides to every debate in the financial markets. After reviewing the relevant facts, you should be convinced that META stock is actually a “Mag-7” asset worth owning this year.
Monster Rally Takes a Year Off
Sometimes, to get a better perspective on how well a stock has performed, it makes sense to pull the chart back. One year’s worth of share-price action will certainly tell a story, but a five-year chart will really give you the big picture.
Over the past year, META stock has only gained a meager 3.44%. That’s nothing to write home about, and it’s far from magnificent even though Meta Platforms is supposed to be a Magnificent Seven company.
However, perhaps we can look at this from a different perspective. During the past five years, Meta Platforms stock has risen 167%, which isn’t too shabby at all.
The recent one-year digestion period may have been necessary after such powerful price appreciation. Furthermore, too much relentless upside could be a cause for concern.
Today, after taking a year off from the monster META stock rally, Meta Platforms has a trailing 12-month price-to-earnings (P/E) ratio of around 30x. That’s not super-low, but it’s also not extremely elevated for a Magnificent Seven member.
Still, there’s more to Meta Platforms than the share price. So, let’s see what’s under the hood as this forward-facing technology giant continues to evolve in 2026.
The Harsh Reality of Reality Labs
Here’s a sore spot for fans of Meta Platforms and its CEO, Mark Zuckerberg. Ever since Zuckerberg rebranded Facebook as Meta Platforms in 2021, the company has had major difficulties profiting from Reality Labs.
A not-so-fun fact from Meta Platforms’ fourth-quarter and full-year 2025 results is that Reality Labs lost $2.207 billion last year. That, by the way, was after the metaverse-focused division lost $2.146 billion in 2024.
What does the future hold for Reality Labs, then? The outlook isn’t too bright as Meta Platforms sees “operating losses remaining similar to 2025 levels” for this business segment.
Critics might feel that Zuckerberg should just pull the plug on Reality Labs, but in a sense, the plug is already being pulled. More specifically Meta Platforms announced that it’s cutting 1,500 workers from Reality Labs and shutting down three virtual reality (VR) game studios.
This isn’t an immediate and complete shutdown, but it may be a step in the right direction. Apparently, the company is investing some of its savings from the Reality Labs cuts to Meta Platforms’ smart glasses and wearables business.
Could the smart glasses and other wearables turn out to be poor sellers? Only time will tell, but at least Zuckerberg is shifting his attention and trying something more promising than Reality Labs.
AI Spend Could Pay Off Big-Time
Irrespective of Reality Labs, Meta Platforms continues to rake in the revenue and profits. For instance, in 2025’s fourth quarter, Meta Platforms grew its revenue 24% year over year to $59.893 billion, ahead of the $58.4 billion that analysts had predicted.
Additionally, the company improved its earnings per share (EPS) by 11% to $8.88, beating the analysts’ consensus estimate of $8.16. Bear in mind, this all occurred while Meta Platforms bled money from Reality Labs.
This year, investors should expect Meta Platforms to spend a great deal of capital on AI technology integration. On that topic, Meta mentioned its expected “2026 hires to support our priority areas, particularly AI.”
Will potentially costly AI enhancements in the company’s social media platforms and gadgets ruin Meta Platforms’ bottom-line results? Not necessarily, as Meta believes it will “deliver operating income that is above 2025 operating income” this year despite a “meaningful step up in infrastructure investment.”
It’s not hard to read between the lines and assume that Meta Platforms’ “infrastructure investment” will include AI technology integration. Truly, it will be magnificent if the company can grow its operating income in 2026 even after mega-spending on AI.
That remains to be seen since Magnificent Seven companies can sometimes over-promise and under-deliver. Nonetheless, Meta Platforms’ solid financial figures should persuade you that the stock is a top pick — and if all goes according to plan, META stock will fly high this year on outstanding, AI-driven results.
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