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Meta (META) Stock

Meta Stock Details, Movements and Public Alerts

Meta Platforms Stock Analysis: The AI-Powered Social Media Empire's Renaissance

Discover how Mark Zuckerberg transformed Meta from a metaverse skeptic's target into an AI powerhouse commanding 3.9 billion daily users. This comprehensive analysis explores Meta's strategic pivot, explosive AI-driven advertising growth, and why the stock trades at an attractive valuation despite posting 40% operating margins.

  • AI Revolution:Llama models powering content discovery, ad targeting, and driving 23% revenue growth
  • Financial Fortress:$135B revenue, 40% operating margins, $65B free cash flow annually
  • Valuation Edge:PE ratio of 27x reasonable for 20%+ growth, trading below tech peers

Market Cap

$1.84T

52-Week High

$747.90

-4.93% from high

52-Week Low

$441.14

+61.17% from low

Avg Daily Volume

15,717,745

100-day average

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

28.66

Above market average

Forward P/E

28.99

Earnings expected to decline

PEG Ratio

2.41

Potentially overvalued

Price to Book

9.97

EV/EBITDA

19.89

EPS (TTM)

$25.60

Price to Sales

10.83

Beta

1.27

Similar volatility to market

How is META valued relative to its earnings and growth?
Meta trades at a P/E ratio of 28.66, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 28.99 is higher than the current P/E, indicating analysts expect earnings to decline over the next year. The PEG ratio of 2.41 indicates a premium valuation even accounting for growth.
What is META's risk profile compared to the market?
With a beta of 1.27, Meta is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 9.97 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

39.10%

Operating Margin

41.50%

Return on Equity

39.80%

Return on Assets

17.90%

Revenue Growth (YoY)

16.10%

Earnings Growth (YoY)

36.50%

How profitable and efficient is META's business model?
Meta achieves a profit margin of 39.10%, meaning it retains $39.10 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 41.50% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 39.80% and ROA at 17.90%, the company generates strong returns on invested capital.
What are META's recent growth trends?
Meta's revenue grew by 16.10% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 36.50% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC. industry averages for proper context.

Dividend Information

Dividend Per Share

$2.03

Dividend Yield

0.29%

Ex-Dividend Date

6/16/2025

Dividend Date

6/26/2025

What dividend income can investors expect from META?
Meta offers a dividend yield of 0.29%, paying $2.03 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of 6/16/2025.
How reliable is META's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Meta pays $2.03 per share in dividends against earnings of $25.60 per share, resulting in a payout ratio of 7.91%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for 6/26/2025.

Company Size & Market

Shares Outstanding

2.17B

Book Value/Share

$73.34

Asset Type

Common Stock

What is META's market capitalization and position?
Meta has a market capitalization of $1.84T, classifying it as a mega-cap stock (over $200B). These are the largest, most established companies globally, typically offering stability and liquidity but with more modest growth potential. Mega-caps often pay dividends and weather economic downturns better than smaller companies. With 2.17B shares outstanding, the company's ownership is widely distributed. As a major player in the SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC. industry, it competes with other firms in this sector.
How does META's price compare to its book value?
Meta's book value per share is $73.34, while the current stock price is $711.00, resulting in a price-to-book (P/B) ratio of 9.69. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$729.37

2.58% upside potential

Analyst Recommendations

Strong Buy

13

Buy

47

Hold

6

Sell

0

Strong Sell

2

How reliable are analyst predictions for META?
68 analysts cover META with 88% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $729.37 implies 2.6% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on META?
Current analyst recommendations:13 Strong Buy, 47 Buy, 6 Hold, 02 Strong Sell. The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Jul 1, 2025, 04:22 AM

Earnings Dates

Upcoming Earnings

Q2

Jul 29, 2025

Est. EPS: $6.46

In 11 days

Recent Earnings History

DateQuarterEstimated EPSActual EPSSurprise
Apr 30, 2025Q1$5.21$6.43+23.4%
Jan 29, 2025Q4$6.68$8.02+20.1%
Oct 30, 2024Q3$5.30$6.03+13.8%
Jul 31, 2024Q2$4.78$5.16+7.9%
Apr 24, 2024Q1$4.32$4.71+9.0%
Feb 1, 2024Q4$4.96$5.33+7.5%
Oct 25, 2023Q3$3.60$4.39+21.9%
Jul 26, 2023Q2$2.87$2.98+3.8%

Technical Indicators

RSI (14-day)

53.42

Neutral

50-Day Moving Average

$674.39

5.43% above MA-50

200-Day Moving Average

$619.47

14.78% above MA-200

MACD Line

13.55

MACD Signal

17.39

MACD Histogram

-3.84

Bearish

What does META's RSI value tell investors?
The RSI (Relative Strength Index) for META is currently 53.42, indicating the stock is in neutral territory (40-60 range). Neither buyers nor sellers have clear control, suggesting consolidation or balanced market forces. Combined with the price being above the 50-day moving average, this confirms bullish conditions.
How should traders interpret META's MACD and moving average crossovers?
MACD analysis shows the MACD line at 13.55 below the signal line at 17.39, with histogram at -3.84. This bearish crossover indicates downward pressure. The wide histogram confirms strong momentum. The 50-day MA ($674.39) is above the 200-day MA ($619.47), forming a golden cross pattern that typically signals a long-term uptrend. Price is currently above both MAs, confirming strength.

Indicators last updated: Jul 16, 2025, 12:32 AM

Active Alerts

Alert Condition
Volume change
Threshold
10%
Created
Jul 14, 2025, 08:38 AM
Alert Condition
Dividend Ex-Date
Threshold
1days
Created
Jul 10, 2025, 04:19 AM
Alert Condition
Reaches new 52-week high
Threshold
N/A
Created
Jul 3, 2025, 01:43 PM
Alert Condition
Volume change
Threshold
10%
Created
Jul 1, 2025, 01:16 PM
Alert Condition
RSI Threshold Cross
Threshold
N/A
Created
May 15, 2025, 10:23 AM
Alert Condition
Price falls below
Threshold
$200.00
Created
Apr 24, 2025, 09:39 AM
Alert Condition
P/E Ratio falls below
Threshold
20x
Created
Apr 10, 2025, 11:01 AM
Alert Condition
Price falls below
Threshold
$200.00
Created
Mar 24, 2025, 10:18 AM
Alert Condition
Reaches new 52-week low
Threshold
N/A
Created
Feb 27, 2025, 10:26 AM

Meta Platforms (META) Stock Analysis 2025: Complete Investment Guide

Discover how Mark Zuckerberg transformed Meta from a metaverse skeptic's target into an AI powerhouse commanding 3.9 billion daily users. This comprehensive analysis explores Meta's strategic pivot, explosive AI-driven advertising growth, and why the stock trades at an attractive valuation despite posting 40% operating margins.

When Mark Zuckerberg announced Meta's pivot from the metaverse to artificial intelligence in early 2023, Wall Street breathed a collective sigh of relief. Today, with flagship products like Facebook reaching 3.07 billion users, Instagram commanding 2 billion, and WhatsApp processing 100 billion messages daily, Meta has proven that the 39-year-old founder's vision extends far beyond virtual reality headsets. The company's aggressive AI integration across its family of apps has reignited growth, sending the stock soaring over 170% in the past year.

The transformation has been nothing short of remarkable. Meta's market capitalization has rebounded to $1.2 trillion, with annual revenue exceeding $135 billion and free cash flow generation that would make Warren Buffett envious. But the real story lies in how Zuckerberg has weaponized artificial intelligence to create what may be the most profitable advertising machine in history, all while maintaining his iron grip on the company through super-voting shares that give him 61% voting control despite owning just 13% of total shares.

The Money-Printing Machine: Meta's Financial Dominance

Meta's financial performance in 2024 shattered expectations and silenced critics who questioned the company's ability to grow in a TikTok-dominated world. Revenue surged 23% year-over-year to $40.6 billion in Q3 2024 alone, driven by a potent combination of user growth and AI-enhanced ad targeting. The company's Advantage+ AI advertising suite now drives the majority of advertiser spending, using machine learning to optimize campaigns in real-time across Meta's 3.9 billion daily active users.

Operating margins expanded to an industry-leading 40%, a testament to Zuckerberg's 'Year of Efficiency' cost-cutting initiative that eliminated 21,000 jobs while simultaneously improving platform performance. The company generated $65 billion in free cash flow over the trailing twelve months, funding both aggressive AI infrastructure investments and a $50 billion share buyback program. This financial fortress provides Meta with unparalleled flexibility to invest in emerging technologies while rewarding shareholders.

Perhaps most impressively, Meta achieved this growth while Reality Labs – the metaverse division – continued burning $4 billion per quarter. The core Family of Apps segment generated $51.7 billion in operating income annually, more than offsetting metaverse losses and demonstrating the incredible profitability of Meta's advertising ecosystem. With 3.29 billion people using at least one Meta app daily, the company possesses an audience reach that even Google envies.

Valuation Analysis: Growth Stock at a Reasonable Price

At a price-to-earnings ratio of 27x, Meta trades at a significant discount to high-growth tech peers despite delivering superior financial metrics. Compare this to Netflix at 44x earnings or Amazon at 43x, and Meta's valuation appears downright conservative. The forward P/E of 24x based on 2025 estimates suggests the market hasn't fully priced in the company's AI-driven growth acceleration.

The PEG ratio (price-to-earnings-growth) of 1.2 indicates Meta is reasonably valued relative to its growth rate, especially considering the company's fortress balance sheet with $70 billion in cash and short-term investments. When factoring in Meta's industry-leading 32% return on equity and minimal debt, the current valuation offers an attractive entry point for long-term investors who believe in the AI transformation story.

Three Explosive Growth Catalysts

1. AI-Powered Advertising Revolution

Meta's Advantage+ AI suite represents the future of digital advertising. By analyzing billions of data points across user interactions, the system automatically optimizes ad creative, targeting, and budgets to maximize advertiser ROI. Early adopters report 32% higher return on ad spend compared to traditional campaigns. As Meta's large language model Llama continues improving, expect ad relevance and pricing power to increase substantially. The company's ability to show users ads they actually want to see – a feat that sounds impossible but AI makes achievable – will drive pricing power for years.

2. WhatsApp Business Monetization

WhatsApp's 2 billion users represent Meta's largest untapped revenue opportunity. The company's click-to-WhatsApp ads are growing at over 80% annually, while WhatsApp Business messaging revenue could reach $10 billion by 2027. As businesses increasingly adopt conversational commerce, WhatsApp's end-to-end encryption and global reach position it as the preferred platform for customer interactions. Meta's patient approach to WhatsApp monetization mirrors its successful Instagram strategy, suggesting massive revenue potential ahead.

3. Reels and Short-Form Video Dominance

Instagram Reels and Facebook's short-form video offerings directly challenge TikTok's dominance while leveraging Meta's superior monetization infrastructure. Reels already generates a $10 billion annual revenue run rate, growing over 50% year-over-year. As Meta's AI recommendation engine improves and creators migrate to platforms with better monetization, Reels could surpass TikTok in both engagement and revenue within two years. The integration of shopping features and AR effects creates monetization opportunities TikTok can't match.

Risk Factors: The Bear Case for META

1. Reality Labs: The $50 Billion Question

  • Reality Labs lost $16 billion in 2023, with losses accelerating in 2024
  • Quest 3 headset sales disappointing despite technical improvements
  • Apple's Vision Pro launch validates AR/VR market but increases competition
  • Zuckerberg expects losses to grow 'significantly' in 2025

2. Regulatory and Platform Risks

  • Apple's App Tracking Transparency cost Meta $10 billion in 2022 revenue
  • EU Digital Markets Act forcing interoperability could reduce competitive moats
  • TikTok's continued growth among younger demographics threatens Instagram
  • Potential antitrust action could force WhatsApp or Instagram divestiture

3. AI Infrastructure Costs

  • 2024 capital expenditures reaching $40 billion, mostly for AI compute
  • Escalating competition with Google, Microsoft, and Amazon in AI development
  • Open-source Llama strategy may commoditize Meta's AI advantages
  • Energy costs and data center constraints limiting growth

Who Should Buy META Stock?

Perfect For

  • Growth investors seeking AI and social media exposure
  • Value seekers attracted to reasonable P/E for 20%+ growth
  • Investors who believe in Zuckerberg's technical vision and execution
  • Those wanting exposure to emerging AR/VR technologies with downside protection

Less Suitable For

  • Conservative investors concerned about Reality Labs losses
  • ESG-focused investors worried about social media's societal impact
  • Those requiring high dividend yields (Meta pays no dividend)

Smart Entry Strategy for META

For investors convinced of Meta's AI transformation story, the current technical setup offers an attractive entry point. The stock's consolidation around $560-580 provides a solid base, with the 50-day moving average at $565 offering support. Consider initiating a position with 50% of intended allocation at current levels, saving the remainder for potential pullbacks to the $520-540 range (near the 200-day moving average).

Meta's quarterly earnings releases create volatility windows perfect for strategic accumulation. The company's tendency to guide conservatively often triggers 5-10% post-earnings dips despite beating estimates. These overreactions provide excellent entry opportunities for patient investors. Set price alerts at $520, $540, and $560 to systematically build positions during market weakness. Remember, with Zuckerberg's track record of proving doubters wrong, time in META has historically beaten timing META.

The Investment Verdict: Zuckerberg's Masterclass Continues

Meta represents a compelling investment opportunity for those who recognize the company's successful pivot from metaverse speculation to AI reality. While Reality Labs continues burning cash at an alarming rate, the core business prints money at a scale few companies can match. Zuckerberg's willingness to make hard decisions – cutting staff, refocusing on AI, and admitting metaverse timeline mistakes – demonstrates the mature leadership skeptics claimed he lacked.

My assessment: Meta is a buy for investors with a 2-3 year horizon who can stomach quarterly volatility. The combination of reasonable valuation (27x earnings), accelerating AI-driven growth, untapped WhatsApp monetization, and Zuckerberg's proven ability to navigate platform transitions makes this a core technology holding. Yes, Reality Labs will continue bleeding money, and regulatory challenges persist, but the risk-reward favors bulls at current levels.

  • 2025 Price Target: $750 (30% upside from current levels)
  • Risk Level: Moderate (for large-cap tech stocks)
  • Recommendation: Buy on any weakness below $550, accumulate for multi-year gains

Conclusion

Meta has successfully transformed from a one-trick social media pony into a diversified technology powerhouse. Mark Zuckerberg's bold AI pivot, combined with disciplined cost management and patient monetization of WhatsApp and Reels, positions Meta for sustained 20%+ revenue growth. While Reality Labs remains a concerning cash drain, the core business generates enough profit to fund moonshots while delivering exceptional shareholder returns. For investors seeking exposure to AI, social media, and the future of human connection, Meta offers growth at a reasonable price – a rare combination in today's market.

Bull Case
$850 (47% upside)
Base Case
$750 (30% upside)
Bear Case
$480 (17% downside)

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