Meta Platforms (NASDAQ:META) remains the top mega-cap tech stock when it comes to the world of social media companies.

Yes, other social media platforms may garner more headlines (such as Elon Musk’s X, formerly known as Twitter), and other platforms may grow faster (such as China’s TikTok).

However, Meta Platforms’ Facebook, Instagram and WhatsApp applications provide investors with a world-class portfolio of social media and communications applications, the likes of which no other company truly has.

Indeed, for those bullish on this space, Meta is the way to play the sector. The company’s recent gains indicate investors are focusing less on the company’s cash burn with its metaverse ambitions, and more on its core cash flow-producing business.

Let’s dive into why META stock remains the best option for investors seeking mega-cap tech exposure now.

The AI Opportunity

Consider the bear case against META stock, but weigh it against the bullish argument. Despite concerns, Meta Platforms is actively addressing issues and enhancing user engagement in Threads, reinforcing a positive outlook.

Meta Platforms is implementing strategies like enabling “hooks” to boost Threads’ appeal. Indeed, I think declaring Threads a failure prematurely isn’t justified.

That’s because Meta Platforms continues to generate revenue from major platforms like Instagram, Facebook, and WhatsApp, with potential growth in the metaverse and VR sales. The company’s commitment to AI innovation, including upcoming generative AI features, further supports its prospects.

As AI technology becomes further integrated within Meta’s portfolio of Apps (whether it be on Reels or Threads), there’s plenty to like about the enhanced growth prospects this tech provides investors over the long-term.

Q2 Earnings Report Summary

Plenty of experts have chimed in with their respective views on Meta Platforms’ Q2 2023 earnings report.

However, it’s clear that the consensus is that Meta blew away expectations, and is laying the groundwork for future beats. InvestorPlace’s own Louis Navellier noted steady margins and a return to double-digit revenue growth because of enhanced digital advertising demand should lead to higher share prices over time. I agree. 

Meta’s profitability is on the rise, surging 16% year-over-year. While Meta Platforms had a year of efficiency in 2023, the company does anticipate higher infrastructure costs and payroll expenses in 2024.

The company expects meaningful year-over-year operating losses in its Reality Labs segment.

That said, for those taking a holistic view of Meta’s past and expected future performance, this is a stock that’s going to continue pumping out cash. Trading at only 22-times forward earnings, it’s a mega-cap tech stock with a reasonable multiple, to boot.

What Now?

While Meta Platforms’ valuation might deter some investors, those thinking long-term should certainly like how the stock is valued right now.

Assuming Threads takes off, the company can integrate AI effectively into its core businesses, and competitive forces abate, there’s a lot to like about how META stock is positioned right now.

There are no other mega-cap tech stocks that can really compete with Meta right now in terms of stability and long-term growth potential. In the tech sector, this remains one of my top picks.

On the date of publication, Chris MacDonald has a LONG position in META. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.