Meta Platforms' shares saw a significant increase of 65% in the year 2024.
Meta's stock, represented by META (0.44%), enjoyed a remarkable surge last year as it reclaimed its spot among the "Magnificent Seven" billion-dollar companies. Similar to other tech giants, Meta rode the wave of renewed interest in AI, witnessing a bump in advertising income and overcoming its early missteps in the metaverse domain.
Numbers from S&P Global Market Intelligence reveal that the stock skyrocketed an impressive 65% in February alone. The graph below gives a visual representation of this uptrend, with the stock soaring early in the year following a strong earnings report. Despite experiencing occasional ups and downs, the overall trend was upward, mirroring the growth in the S&P 500.
Meta Regains its Swagger
Meta's stock plummeted through 2022 due to the slowdown in the advertising sector and massive investments in its metaverse project. However, the stock recovered its footing in 2024, sustained by solid financial results and promising advancements in AI initiatives.
The stock's most significant leap occurred following the release of Meta's 2023 fourth-quarter earnings in February. The stock price surged 20% on that day and also initiated a dividend, rewarding investors without the need to sell their holdings. Meta reported stellar fourth-quarter revenue growth of 25% to an astounding $40.1 billion. Operating margin more than doubled to 41%, with cost reductions and layoffs contributing to the increase, while the tax rate dipped, leading to an impressive net income tripling to $14 billion, or $5.33 per share, showcasing its potential for profitability.
Throughout the first three quarters of 2024, Meta continued to shine, benefiting from robust advertising demand and expanding its colossal user base due to the enduring popularity of its offerings – including Facebook, Instagram, Messenger, and WhatsApp.
Analysis of the first three quarters of 2024 reveals that revenue grew by 22.5% during this period, while earnings per share jumped by 66%.
Upward Trajectory in 2025?
As we welcome the new year, Meta seems poised for further advancements, with the digital advertising and AI sectors continuing to surge. Investors will gain insights into Meta's crucial holiday-quarter results on January 29.
Meta's stock still boasts an attractive valuation with a P/E ratio of 29, implying room for growth beyond the previous year. Despite not having the same margin boost that it enjoyed in 2024, investors can look forward to another year of gains.
Enrichment Data Integration:
Based on expert analysis, Meta Platforms will likely continue its impressive growth trajectory in 2025, driven by its ongoing dominance in digital advertising and notable focus on AI. Analysts have projected the company's revenue to reach $183.46 billion, with net income reaching $62.25 billion, and earnings per share expected to be $24.12. In fact, by 2026, revenue could surpass $200 billion, with earnings per share projected to hit $27.71. In terms of stock pricing, 24/7 Wall Street forecasts a $603 end-of-year value, with further predictions of $692 by 2026, $760 by 2027, and $809 by 2028.
- With the digital advertising and AI sectors showing no signs of slowing down in 2025, Meta's finance sector is expected to thrive, potentially driving the value of META stocks higher.
- Investors looking to profit from Meta's growth in 2025 might want to consider investing in stocks, as the company's P/E ratio suggests room for further growth beyond the previous year.
- Meta's focus on investing in its metaverse projects and AI initiatives, as well as the positive outlook for digital advertising, could contribute to a 979 billion dollar market cap in 2025, given the current surging trends.
- By 2025, experts predict that Meta Platforms will have revenue of $183.46 billion, net income of $62.25 billion, and earnings per share reaching $24.12, as the company continues its upward trajectory in the tech industry.
