From Nasdaq:

The S&P 500 has an average return of 10% per year, so a stock returning 40% may raise red flags for investors. However, missing out on big winners like Nvidia and Super Micro Computer by selling early could lead to missed opportunities for massive returns.

Meta Platforms (NASDAQ: META) has seen a 40% increase in 2024 and over 300% since the start of 2023. Despite its success, the company’s advertising business remains strong. With the development of AI technologies like Ego for AR glasses, Meta’s stock could see substantial growth.

In the fourth quarter, Meta reported record ad sales of $38.7 billion, with a 24% year-over-year increase. The company converts 54% of this revenue into operating profits, leaving an impressive $16.4 billion, which contributed to its growing $65.4 billion cash stockpile.

Meta’s forward price-to-earnings ratio is around 25, a fair price for a company focused on AI technologies and revenue growth. Compared to other big-tech stocks, Meta’s stock is fairly priced, making it an attractive investment with potential for significant growth in the future.

Randi Zuckerberg, former Facebook director and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Meta Platforms. The author of this article may have positions in Meta Platforms.



Read more at Nasdaq: Meta Platforms Is Up 40% This Year. Here’s Why It’s Still a Fantastic Buy