Investors may think this is one of the worst times to buy Meta Platforms (META 0.37%) stock. Although it dominates the social media sphere, the fact that more than 40% of the world's population logs onto a Meta-owned site every day may imply limited growth. Its stock price has increased by more than 650% from its lows in October 2022 and recently traded at an all-time high.

Despite these gains, Meta may actually be well-positioned to continue its growth trajectory. Here's why it may not be too late to buy this social media company.

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The continuing case for Meta Platforms stock

Meta Platforms is not at a saturation point. Despite its massive 3.4 billion user base, the number of people on its platforms actually grew 6% over the last year in its most recent reported quarter. These users generate more advertising revenue, which increased 16% year over year in Q1.

Admittedly, ads make up nearly all of Meta's current revenue, and with the advertising landscape becoming increasingly saturated, growth is likely to slow over time. However, Meta's role in artificial intelligence (AI) will likely breathe additional life into the stock.

That is because Meta's users generate a tremendous amount of personal data that Apple or Alphabet may not have the ability to match. This gives it a competitive advantage in terms of training AI models.

Additionally, Meta anticipates spending between $64 billion and $72 billion on capital expenditures in 2025 to capitalize on this opportunity and remain competitive in AI. That's an expense it can afford given its $50 billion in free cash flow generated over the last year and its $70 billion in liquidity.

Furthermore, investors can buy into this opportunity at a relatively reasonable price. Its 27 P/E ratio is not only below the S&P 500 average of 30, but it is also the second-lowest earnings multiple in the "Magnificent Seven" (Alphabet is lower). That factor gives investors good reason to buy the stock before its AI business takes off in earnest.