From Nasdaq: 2025-02-07 17:15:00

Meta Platforms (NASDAQ: META) stock has surged 116% in the past three years, outperforming the Nasdaq Composite index. The company’s growth is driven by AI tools in digital advertising, with AI adoption expected to grow by 25% annually through 2030.

Meta Platforms reported a 22% revenue increase to $164.5 billion in Q4 2024, with earnings up 60% year over year. The company’s AI-focused advertising tools, like Advantage+ platform, are gaining traction and have exceeded a $20 billion annual revenue run rate.

Meta Platforms launched the Andromeda machine learning platform with Nvidia to improve ad quality, leading to an 8% increase in ad quality. The company plans to spend $60-65 billion on generative AI efforts this year. Advertisers are responding well, with a 14% increase in average price per ad in Q4.

Analysts project a single-digit earnings increase for Meta this year to $25.30 per share, but earnings growth is expected to accelerate into the mid-teens from next year. If the company achieves $34.08 per share in 2027, its stock price could reach $1,141, a 65% jump from current levels.

Investors can consider adding Meta Platforms to their portfolios, as the company’s AI-driven growth potential presents a compelling opportunity for upside in the next three years. The company’s focus on AI tools and ad optimization is expected to drive healthy bottom-line growth and stock performance.



Read more at Nasdaq: Where Will Meta Platforms Stock Be in 3 Years?