Meta Platforms stock has surged with AI advancements, potential TikTok ad revenue, strong user base

From Nasdaq: 2025-01-01 06:00:00

Meta Platforms (NASDAQ: META) stock has surged over 400% in the past two years, embracing AI and moving beyond its metaverse misstep. With a market cap over $1.5 trillion, investors wonder if this growth can continue as revenue growth may slow. Deciding to stay friends with Meta stock involves weighing these factors.

Meta dominates social media with 3.3 billion daily users and ranks second in ad revenue behind Alphabet. Investors see potential in TikTok’s uncertain future, as a ban in the U.S. could redirect ad revenue to Meta. However, TikTok’s fate remains unclear, with potential outcomes affecting Meta’s stock price.

Despite TikTok competition, Meta’s AI ventures show promise. AI tools like chatbots and ad managers could drive revenue growth. The company plans $38-40 billion in capital expenditures, supported by $156 billion in revenue and $71 billion in liquidity. With a P/E ratio below the S&P 500 average, Meta stock maintains its valuation.

Investors should consider Meta’s market dominance and AI potential before deciding if now is the right time to invest. Uncertainty surrounding TikTok and revenue growth projections may impact short-term stock performance. However, Meta’s strong user base and AI capabilities position it for long-term growth and cash flow generation.

Consider the Motley Fool’s list of the 10 best stocks, which doesn’t include Meta Platforms. Stock Advisor offers a blueprint for investment success, outperforming the S&P 500 since 2002. While Meta may not be on the list, its long-term potential could still offer significant returns for investors who believe in its growth story.



Read more at Nasdaq: Should Investors Unfriend Meta Platforms Stock in 2025?