Meta is the most undervalued stock in the Mag7 right now (Save this). Zuckerberg told employees he expects Meta to start feeling more significant benefits from its AI investments within the next three to six months. Meta raised its 2026 Capex guidance from $60 to $65 billion all the way up to $125 to $145 billion more than doubling its original spending plan in a single year. That capital is going into data centers, custom AI silicon and the compute backbone that will power everything from ad ranking to AI agents across four billion user platforms. When some of that infrastructure goes live over the next three to six months, it won't be rolling out to a small user base, it will be hitting the most engaged consumer audience ever assembled. Meanwhile the core business keeps printing money at a rate most companies would kill for. Q1 2026 revenue came in at $56.3 billion up from $42.3 billion a year ago and net income hit $26.8 billion on a 41% operating margin. Ad impressions grew from around 20% last year to 19% this year, and the average price per ad moved from roughly flat to up 12% both signaling that advertisers are getting more value from Meta's targeting. And then there's the user base, 3.56 billion people open a Meta product every single day up from around 3.2 billion a year ago which means the distribution platform getting all this AI capex poured into it is still growing. WhatsApp sits at 87% DAU/MAU and 86% Month-1 retention, both number one in the world for any non preinstalled app. Instagram runs at 82% on both while Facebook has 2.3 billion monthly users still opening it at 60% daily rates. There are 15 apps on earth with over a billion monthly users and Meta owns four of them. When the AI products Zuckerberg is talking about start working moving from early to mature deployment over the next three to six months, they don't roll out to 600 million ChatGPT users or 400 million Copilot users. They roll out to 3.56 billion people who are already in the app every day. I remain bullish on Meta over the next couple quarters and make sure to follow me @MelvinInvests for more overlooked opportunities in AI.