From Yahoo Finance: 2025-03-29 08:45:00

Meta Platforms’ shares have surged to an all-time high in 2024 after a remarkable turnaround, with solid financial performance. Revenue and operating profit grew significantly, driven by 3.35 billion daily active users across Facebook, Messenger, Instagram, and WhatsApp. The company’s focus on AI technology enhances user experience and advertising business.

Despite the success, Meta faces uncertainties with its metaverse business, which continues to incur losses. The potential market size for the metaverse is projected to reach $508 billion by 2030, but the timing and actual market size remain uncertain. Additionally, Meta’s stock valuation is relatively high, making it less attractive for potential investors at the current price.

While Meta’s core advertising business is thriving, its investment in Reality Labs is draining profits. The company’s stock, with a high price-to-earnings ratio, may not offer a significant margin of safety for investors. As Meta continues to monetize its apps, sustained growth is expected, but caution is advised for potential investors considering the current valuation.

Investors are advised to hold onto Meta stock if already owned, but potential buyers may want to wait for a better entry point. The company’s performance is strong, but uncertainties surrounding the metaverse and stock valuation make it a less compelling investment at the current price. As Meta continues to innovate and grow its user base, future growth prospects remain positive.

Read more: Meta Platforms Stock: Buy, Hold, or Sell?