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Meta, Pinterest and Reddit trade at low valuations amid growth push
Meta is looking to potentially launch a cloud operation and debuted its Muse Spark 1.1 multimodal reasoning model, while Q1 revenue growth was reported at 33%.
Yahoo Finance highlights three social media stocks, Meta Platforms, Pinterest, and Reddit, as examples of companies that are seeing growth but trade at valuations that the outlet argues do not fully reflect that momentum.
For Meta, the piece points to a shift in the narrative around its AI spending, including the potential start of a cloud computing operation that could sell excess compute capacity to third parties if its data center investments outpace internal demand.
The article also cites Meta's Muse Spark 1.1 multimodal reasoning model and says the company is using AI across its platform, including improving recommendations to keep users engaged longer and serving more relevant ads to drive advertiser conversions.
On valuation, Yahoo Finance says Meta trades at a forward P/E of 20.5 and notes that it grew Q1 revenue by 33%, while it describes Pinterest as trading at a forward P/E under 12.