From Nasdaq: 2025-04-28 04:10:00

Share prices of Meta Platforms (NASDAQ: META) hit an all-time high of $740.89 on Feb. 14, but have since dropped nearly 26% amid concerns about the U.S. economy. Despite this, the stock has seen a 188% return over the past five years, prompting investors to question whether it’s a buying opportunity or a sign of further decline.

Meta’s AI leadership, driven by access to data from over 3.35 billion daily users, powers innovative ad targeting and user engagement on its platforms. With tools like Llama 4 and machine learning algorithms, Meta personalizes content feeds and boosts ad conversion rates, positioning it as a key player in the industry.

Anticipation is high for Meta’s Q1 earnings report on April 30, with analysts expecting revenue growth of 13.5% and EPS of $5.22. Investors will focus on user engagement and ad spending trends, along with CEO Mark Zuckerberg’s guidance on capital expenditures. Despite potential economic disruptions, Meta’s financial strength remains solid.

Since 2022, Meta has implemented cost-saving measures, making it more efficient and resilient. With a forward P/E ratio below its five-year average, the stock appears undervalued. Amid market uncertainties, Meta’s growth potential as a tech and AI leader could drive a stock price rally in 2025.

Considerations surrounding investing in Meta Platforms include insights from The Motley Fool Stock Advisor, which identified 10 top stocks for potential high returns. While Meta wasn’t on that list, the historical outperformance of Stock Advisor compared to the S&P 500 highlights the potential for significant gains in the market. Joining Stock Advisor provides access to the latest top stock recommendations.



Read more at Nasdaq: Meta Platforms Stock Is Down 28% From Its Peak. Here’s How the Rest of 2025 Could Play Out for This AI Stock.