Meta Platforms stock poised to reach $2 trillion market cap by 2030 with strong growth potential

From Nasdaq: 2024-04-10 03:40:00

Meta Platforms (NASDAQ: META) stock has surged by 140% in the past year, pushing its market cap to $1.32 trillion, making it the seventh-largest company globally. A further 52% increase could propel it into the $2 trillion club, as it capitalizes on the growing digital ad market and AI tools to drive revenue growth.

In 2023, Meta Platforms reported a 25% increase in revenue to $40.1 billion, with earnings tripling to $5.33 per share. Analysts project a 17.5% revenue increase in 2024 to $158.5 billion, reflecting its stronghold on the digital ad market. With the market expected to reach $1.15 trillion by 2030, Meta’s revenue could soar.

The company’s advertising revenue of $132 billion in 2023 gave it a 31% share of the digital ad market, a position it aims to strengthen with AI tools. By leveraging AI for ad campaigns, Meta could attract more advertisers, driving revenue growth and potentially surpassing a $2.3 trillion market cap by 2030, much earlier than expected.

Strong bottom-line growth is expected, with analysts forecasting a 24% annual increase in earnings over the next five years. This growth, driven by AI tools and market share gains, could push Meta Platforms’ stock price to $822 by 2026 and into the $2 trillion club. With a reasonable valuation, this tech stock offers solid upside potential for investors.

Investors pondering a $1,000 investment in Meta Platforms should note that the Motley Fool Stock Advisor analysts have identified other top stocks for potential high returns. While Meta is not among their top picks, its growth prospects, AI tools, and digital ad market leadership position it well for future success and increased stock value.



Read more at Nasdaq: Will Meta Platforms Be a $2 Trillion Stock by 2030?