Prediction: Meta Stock Will Pop After Q2 Earnings. 3 Reasons Why

Meta stock trades at a 30% discount to the S&P 500 after nine straight down days, setting up potential upside ahead of Q2 earnings. The stock currently trades at 19x price-to-earnings, well below the broader market multiple.

The Motley Fool flags three bullish catalysts. First, advertising revenue momentum: Meta posted 33% year-over-year growth in Q1, signaling continued strength in its core business. Second, the valuation gap creates room for multiple expansion if the company meets or beats estimates. Third, Meta may announce a new cloud computing business designed to monetize its AI infrastructure investments, opening a fresh revenue stream beyond advertising.

The nine-session losing streak has pushed shares into oversold territory despite no fundamental deterioration. Advertising growth at 33% demonstrates the core platform remains resilient, while the valuation discount provides a margin of safety relative to the S&P 500's elevated multiples.