Meta Platforms, formerly known as Facebook, Inc., was founded in 2004 and has transformed into a social media and technology giant. Today, Meta as well as traditional social media, Meta has ventured into the future of immersive experiences.
Meta’s product portfolio includes some of the most popular social media platforms globally: Facebook, Instagram, WhatsApp, and Messenger. They’re also actively developing hardware like the Meta Quest VR headset to bridge the gap between the physical and virtual worlds.
Meta is led by CEO and co-founder Mark Zuckerberg. The company trades on the Nasdaq stock exchange under the ticker symbol META. It is included in the S&P 500 and Nasdaq-100 indexes.
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Meta EPS and Revenue Breakdown 2020-2023
| Meta Platforms | Annual EPS | Annual Revenue |
|---|---|---|
| 2020 | $10.22 | $85.96 billion |
| 2021 | $13.99 | $117.93 billion |
| 2022 | $8.63 | $116.61 billion |
| 2023 | $15.19 | $134.90 billion |
Social Media and Technology Industry Comparison
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Meta Platforms Share Price & Chart
After a dip in 2022, prompted by weaker revenue and aggressive spending focused on the metaverse and virtual reality, the Meta Platforms share price made a strong comeback in 2023 and into the first half of 2024.
P/E Ratio Average Over the Last Ten Years: 37.08 (Source: FullRatio)
Meta Platforms Share Price Forecast
According to data compiled by TradingView, out of 65 analysts covering Meta, 55 have a Buy rating, seven have a Hold rating, and three analysts have a Sell rating on the social media company.
In a client note, analysts at Exane BNP Paribas initiated coverage of Meta Platforms with an Underperform rating and a $360 price target. The bank said Meta’s artificial intelligence spending is set to jump without new revenue streams to match it. As a result, Exane BNP prefers Meta’s generative AI peers, whom it believes have a clearer path to monetisation.
Loop Capital maintained a Buy rating on Meta but cut its price target for the stock to $550 from $555. The investment firm said it believes Meta’s management is clearly talking down the stock and hinting to competitors that they will not be outspent in the infrastructure arms race.
Truist also lowered its target for Meta to $535 from $550 in a recent note, keeping a Buy rating on the shares. Truist remained constructive on the stock after its better-than-expected Q1 results. The firm explained that the softer Q2 guide is driven by tougher year-over-year comps and the decision to double down on the AI opportunity ahead. However, they note that Meta is already seeing green shoots from AI innovation in its ads business.
Our View: Given its position across social media and technology, Meta stock represents a potentially attractive option for many investors, although there are still headwinds to consider before jumping straight in.
In addition, the company recently made an unexpected announced it was initiating a quarterly dividend payment, providing a potential reason for income-focused investors to take a look at the stock.
Who Should Buy Meta Stock
Meta Platforms can be an attractive investment opportunity, but it’s not suitable for every investor’s portfolio. Here’s a breakdown of who might benefit from buying Meta shares:
Investors who are comfortable with the inherent risks of growth stocks might consider Meta Platforms. The stock can be volatile due to factors like regulatory scrutiny, changes in user engagement, advertising revenue fluctuations, and broader market conditions.
Those who believe in the long-term potential of the digital advertising industry, social media, and the metaverse may find Meta appealing. A long-term investment perspective allows investors to navigate through short-term challenges and capitalise on future growth opportunities.
Meta is known for its innovation and extensive user base across platforms like Facebook, Instagram, and WhatsApp. Investors seeking exposure to technology companies with significant growth potential might find Meta attractive. However, this growth potential comes with associated risks, such as competition and regulatory issues.