Meta Platforms (META) and Shopify (SHOP) are facing significant stock declines—24% and 46% from their recent highs, respectively—due to investor concerns over aggressive spending and soft guidance. Despite these challenges, CNBC’s Jim Cramer argues that both stocks are undervalued, presenting attractive entry points for investors. Analysts share this sentiment, with Meta’s median target price suggesting a 36% upside and Shopify’s indicating a 55% upside from current levels.
For Meta, the company’s substantial investment in AI, including new tools like Muse Spark and Meta AI, has already shown positive results, such as a 19% increase in ad impressions and a 33% rise in revenue. Meanwhile, Shopify is capitalizing on AI advancements with its Shopify Magic suite and partnerships like the Universal Commerce Protocol, which positions it well for future growth in e-commerce.
Investors should consider these stocks as potential buying opportunities, particularly given their strong earnings momentum and the promising long-term outlook for AI integration in their respective sectors.
Source: fool.com