From Nasdaq:

1. Wall Street had lost faith in Meta Platforms (NASDAQ: META) with a 60% drop in value in 2022. A year later, the stock is up 180% at $500 per share. Will this rally continue for the social media giant?

2. Meta Platforms’ stock rally is fueled by positive growth news. With over 3 billion daily users on its social media apps and $132 billion in advertising revenue in 2023, the company is showing strong engagement and financial performance.

3. Despite widening losses in Reality Labs, Meta Platforms nearly doubled its earnings to $47 billion in 2023. Operating margins are at 35%, moving back towards pre-pandemic levels. Analysts expect earnings per share to rise by 33% this year to $20.

4. Meta Platforms’ shares are trading at 10 times annual sales, an all-time high valuation. However, the stock’s rally is supported by real growth in user base and advertising business. Margins could reach 50% with R&D investments paying off, justifying the premium valuation.

5. The Motley Fool does not recommend buying Meta Platforms stock right now but instead highlights 10 other stocks for potential high returns. The Stock Advisor service has outperformed the S&P 500 since 2002. Demitri Kalogeropoulos has positions in Meta Platforms, and Randi Zuckerberg is on The Motley Fool’s board.



Read more at Nasdaq: Meta Platforms Stock at $500: Is It Too Late to Buy?