Meta Platforms, the parent company of Facebook and Instagram, is a cyclical business that relies heavily on advertising revenue. Despite being considered a mature company, it has shown solid growth in recent years, with advertisers expecting consumers to maintain their spending levels. A comparison of Meta’s current performance to its past revenue growth reveals some promising signs for 2025.
Historically, Meta’s stock has seen significant gains when its revenue and valuation were similar to those of 2019-2021. This time around, investors can expect a solid year as the company continues to grow. Wall Street analysts forecast a 15% revenue growth rate in 2025, which is slower than the past three years but still indicates strong performance.
However, Meta’s growing infrastructure expenses, largely driven by artificial intelligence investments, may impact profit growth. Analysts predict a 12% earnings-per-share (EPS) growth in 2025, suggesting that the increased spending won’t significantly affect earnings. With its reasonable price and solid historical performance, investors should keep an eye on Meta heading into 2025.
Source: https://finance.yahoo.com/news/history-says-meta-platforms-primed-110000071.html