Metaplatforms (NASDAQ: META) stock has seen a huge surge recently. Yesterday (March 26) it fell 8%, taking its all-time high to 31%.

Is it time to buy this Magnificent 7 name for my portfolio? Let’s take a look at the configuration.

It looks inexpensive today

The meta sure looks inexpensive right now. With analysts expecting earnings per share of $29.80 this year and $34.40 next year, we’re looking at price-to-earnings (P/E) ratios of 18.4 and 15.9 in the forecast.

These are low valuations for Magnificent 7’s stock, especially considering the growth Meta is expected to generate in the coming years.

This year, revenue is expected to grow about 25% year-over-year to $250 billion. Next year, analysts expect $296 billion (+18%).

In terms of earnings per share, we expect growth of approximately 27% this year and 15% next year. If we take expected earnings growth in 2026 and compare it to the P/E ratio, we get a price-to-earnings-to-growth (PEG) ratio of just 0.7 (a ratio below one typically signals an undervalued stock).

AI winner?

Going beyond valuation, Meta has substantial plans for the future. While the company is currently known for its social media platforms, it will likely focus more on artificial intelligence in the future.

Meta’s goal is to build a “superintelligence” platform and give people access to powerful artificial intelligence tools that will enable them to achieve unprecedented productivity. Ultimately, it is to become an indispensable tool in the era of artificial intelligence.

To achieve this, it is investing billions in artificial intelligence infrastructure (data centers, chips, nuclear energy, etc.). It also focuses on products such as gigantic tongue models (Lamy) and intelligent glasses.

So this is a long-term growth story. If the world continues to adopt AI, the Meta could potentially grow significantly.

High risk for investors

While this all sounds exhilarating, investing does involve some risk (both in the miniature and long term). In the miniature term, the company faces high levels of regulatory/legal scrutiny due to the addictive nature of its platforms.

The reason for yesterday’s share price decline was the company’s loss of a court case related to damages in social media. Experts believe this could expose the company to a wave of lawsuits (which could potentially significantly impact its profits and cash flow).

Meanwhile, in the long run, we do not know whether Meta’s huge investments in artificial intelligence (it plans to spend as much as $135 billion this year) will actually pay off. The company will have a lot of competition in this market, and at this stage no one knows exactly how artificial intelligence will perform.

Another thing to mention is that the stock price chart looks terrible. The company’s stock is currently in a nasty downtrend, and buying in can be like trying to catch a falling knife.

Greater opportunities on the market?

With all this in mind, I’m not looking to buy Meta stock for my portfolio right now. In my opinion it’s too risky.

I think there are better options on the market for me right now.