Shares of Meta Platforms (NASDAQ: META) soared final yr because the “Magnificent Seven” inventory cracked the trillion-dollar mark as soon as once more.
Like different tech shares, Meta Platforms jumped on the broader AI increase because it skilled a resurgence in promoting income and moved previous its earlier metaverse misstep.
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In keeping with knowledge from S&P Global Market Intelligence, the inventory jumped 65% final month. As you’ll be able to see from the chart under, the inventory jumped early within the yr on a robust earnings report, and although it swung up and down, the overall trajectory was up, according to the beneficial properties within the S&P 500.
Meta flexes its muscular tissues once more
Meta inventory plunged via 2022 because the promoting market slowed down and the corporate poured billions into its metaverse mission. However the inventory continued its profitable restoration in 2024. Meta reported sturdy monetary outcomes and gained traction in its AI efforts, saying that it anticipated Meta AI to be probably the most used AI chatbot by the tip of the yr.
The inventory’s greatest day of the yr got here after it reported 2023 fourth-quarter earnings in February. It jumped 20% on Feb. 2 and in addition initiated a dividend, rewarding shareholders with out a have to promote the inventory. Within the quarter, Meta reported 25% income progress to $40.1 billion. Working margin greater than doubled to 41% because it benefited from earlier price cuts and layoffs. Moreover, its revenue tax charge fell, resulting in web revenue tripling to $14 billion, or $5.33 per share, displaying its revenue potential.
Over the primary three quarters of 2024, Meta continued to ship sturdy progress as promoting demand remained sturdy and the corporate continued to develop its large person base because of continued curiosity in its merchandise, which embody Fb, Instagram, Messenger, and WhatsApp.
By means of the primary three quarters of 2024, income was up 22.5% whereas earnings per share have elevated 66%.
Picture supply: Getty Photos.
Can Meta hold climbing in 2025?
Waiting for the brand new yr, Meta seems positioned for additional progress as momentum in digital promoting and AI stays sturdy. Buyers will get a peek on the all-important holiday-quarter outcomes on Jan. 29.
There’s room for the inventory to go greater this yr because it nonetheless trades at an inexpensive valuation with a price-to-earnings (P/E) ratio of 29. The corporate will not have the identical margin springboard it benefited from in 2024 , nevertheless it ought to ship one other yr of progress for traders.
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- Nvidia: should you invested $1,000 once we doubled down in 2009, you’d have $363,307!*
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Proper now, we’re issuing “Double Down” alerts for 3 unimaginable firms, and there is probably not one other likelihood like this anytime quickly.
*Inventory Advisor returns as of January 6, 2025
Randi Zuckerberg, a former director of market growth and spokeswoman for Fb and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Idiot’s board of administrators. Jeremy Bowman has positions in Meta Platforms. The Motley Idiot has positions in and recommends Meta Platforms. The Motley Idiot has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.
