We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Meta stock has soared 340% in the past two years, crushing its Magnificent 7 peers outside of Nvidia during this run.
Meta’s core digital advertising business is thriving and Mark Zuckerberg and Meta’s push into open-source AI could see it transform into one of the key players in artificial intelligence.
Meta stock is also one of the cheapest Magnificent 7 stocks. On top that, Wall Street pushed Meta higher on Monday as Nvidia and other AI-related stocks tanked on the back of the DeepSeek news.
Why Meta is a Buy and Hold Tech and AI Stock
Meta Platforms and its three core apps—Facebook, Instagram, and WhatsApp—help it stand tall in the growing world of digital advertising.
Meta grew its daily active users across Facebook, Instagram, and WhatsApp by 5% in Q3 to 3.29 billion, with ad impressions up 7% and prices 11% higher.
Image Source: Zacks Investment Research
Meta’s core social media and messenger business has thrived despite competition from the likes of TikTok and others. Meta is set to expand for years in a world of smartphone addicts.
On top of reaching 3.3 billion people daily, Meta is investing heavily in AI. Mark Zuckerberg and Meta are carving out a unique path in big tech's artificial intelligence arms race by going all in open-source AI.
Zuckerberg wrote a note last year that dove into his vision for Meta’s open-source AI. He wants to turn Meta's AI into the standard foundation for AI akin to how open-source Linux became the industry standard foundation for cloud computing and the operating systems that run most mobile devices.
Image Source: Zacks Investment Research
Wall Street pushed Meta stock higher on Monday as it dumped Nvidia (NVDA - Free Report) and other AI stocks based on fears that China’s DeepSeek AI model could rapidly curb AI spending.
Meta is far from a pure-play AI bet, and it was already going all in on open source. Therefore, the DeepSeek news isn’t a cause for panic and it might lead to Meta cutting back on its capital spending.
Other Key Meta Stock Fundamentals
Meta is far more focused on efficiency and profits than it was a few years ago. The end of ultra-low interest rates forced Meta to streamline its business and focus on profitable expansion. Meta showcased its newfound interest in profitability and returning value to shareholders by starting to pay a dividend last year.
Image Source: Zacks Investment Research
The company grew its earnings by roughly 70% in 2023 on 16% higher revenue. Meta is projected to grow its earnings by 56% in FY24 and another 11% in FY25.
Meta’s earnings outlook has climbed since its Q3 release and its Most Accurate estimates came solidly above consensus. Meta has topped our EPS estimate by an average of 11% in the trailing four quarters.
Meta is expected to expand its revenue by 21% in FY24 and 15% in 2025 to reach $187.16 billion—adding $52 billion to the top line compared to 2023.
Meta found buyers at its 50-day moving average three times in the last month before it finally broke out to new all-time highs.
Meta stock has climbed 12% YTD vs. Tech’s 4%. The recent surge is part of a 345% run in the past two years to blow away all of its Magnificent 7 peers outside of Nvidia.
Image Source: Zacks Investment Research
Meta stock has soared 760% in the past decade to more than double the Zacks Tech sector.
Despite its run to new highs and long-term outperformance, Meta trades at a 10% discount to the Zacks Tech sector and 70% below its highs at 24.8X forward 12-month earnings. Meta is also one of the cheapest Mag 7 stocks: Microsoft trades at 31.8X forward earnings; Nvidia trades at 36X; Apple trades at 29X; Amazon trades at 36.4X.
Time to Buy Meta Stock Before Q4 Earnings?
Playing a stock for a post-earnings gain is risky. The DeepSeek news and the potential wrench it throws in the AI spending boom make near term volatility and selling even more likely for Meta and other big tech stocks.
Image Source: Zacks Investment Research
Some investors might want to wait for a pullback back down to Meta’s 50-day moving average before they buy since it is a bit overheated. That said, Meta’s long-term bull case is firmly intact.
Wall Street has celebrated Meta’s winning combination of AI growth, powered by its strong balance sheet, and the steady expansion of its core business. For example, 44 of the 53 brokerage recommendations Zacks has are “Strong Buys.”
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Is Meta a Must-Buy MAG 7 Stock Before Earnings for AI Growth?
Meta Platforms, Inc. (META - Free Report) stock hit new all-time highs on Monday heading into its Q4 earnings report on Wednesday, January 29.
See the Zacks Earnings Calendar to stay ahead of market-making news.
Meta stock has soared 340% in the past two years, crushing its Magnificent 7 peers outside of Nvidia during this run.
Meta’s core digital advertising business is thriving and Mark Zuckerberg and Meta’s push into open-source AI could see it transform into one of the key players in artificial intelligence.
Meta stock is also one of the cheapest Magnificent 7 stocks. On top that, Wall Street pushed Meta higher on Monday as Nvidia and other AI-related stocks tanked on the back of the DeepSeek news.
Why Meta is a Buy and Hold Tech and AI Stock
Meta Platforms and its three core apps—Facebook, Instagram, and WhatsApp—help it stand tall in the growing world of digital advertising.
Meta grew its daily active users across Facebook, Instagram, and WhatsApp by 5% in Q3 to 3.29 billion, with ad impressions up 7% and prices 11% higher.
Image Source: Zacks Investment Research
Meta’s core social media and messenger business has thrived despite competition from the likes of TikTok and others. Meta is set to expand for years in a world of smartphone addicts.
On top of reaching 3.3 billion people daily, Meta is investing heavily in AI. Mark Zuckerberg and Meta are carving out a unique path in big tech's artificial intelligence arms race by going all in open-source AI.
Zuckerberg wrote a note last year that dove into his vision for Meta’s open-source AI. He wants to turn Meta's AI into the standard foundation for AI akin to how open-source Linux became the industry standard foundation for cloud computing and the operating systems that run most mobile devices.
Image Source: Zacks Investment Research
Wall Street pushed Meta stock higher on Monday as it dumped Nvidia (NVDA - Free Report) and other AI stocks based on fears that China’s DeepSeek AI model could rapidly curb AI spending.
Meta is far from a pure-play AI bet, and it was already going all in on open source. Therefore, the DeepSeek news isn’t a cause for panic and it might lead to Meta cutting back on its capital spending.
Other Key Meta Stock Fundamentals
Meta is far more focused on efficiency and profits than it was a few years ago. The end of ultra-low interest rates forced Meta to streamline its business and focus on profitable expansion. Meta showcased its newfound interest in profitability and returning value to shareholders by starting to pay a dividend last year.
Image Source: Zacks Investment Research
The company grew its earnings by roughly 70% in 2023 on 16% higher revenue. Meta is projected to grow its earnings by 56% in FY24 and another 11% in FY25.
Meta’s earnings outlook has climbed since its Q3 release and its Most Accurate estimates came solidly above consensus. Meta has topped our EPS estimate by an average of 11% in the trailing four quarters.
Meta is expected to expand its revenue by 21% in FY24 and 15% in 2025 to reach $187.16 billion—adding $52 billion to the top line compared to 2023.
Meta found buyers at its 50-day moving average three times in the last month before it finally broke out to new all-time highs.
Meta stock has climbed 12% YTD vs. Tech’s 4%. The recent surge is part of a 345% run in the past two years to blow away all of its Magnificent 7 peers outside of Nvidia.
Image Source: Zacks Investment Research
Meta stock has soared 760% in the past decade to more than double the Zacks Tech sector.
Despite its run to new highs and long-term outperformance, Meta trades at a 10% discount to the Zacks Tech sector and 70% below its highs at 24.8X forward 12-month earnings. Meta is also one of the cheapest Mag 7 stocks: Microsoft trades at 31.8X forward earnings; Nvidia trades at 36X; Apple trades at 29X; Amazon trades at 36.4X.
Time to Buy Meta Stock Before Q4 Earnings?
Playing a stock for a post-earnings gain is risky. The DeepSeek news and the potential wrench it throws in the AI spending boom make near term volatility and selling even more likely for Meta and other big tech stocks.
Image Source: Zacks Investment Research
Some investors might want to wait for a pullback back down to Meta’s 50-day moving average before they buy since it is a bit overheated. That said, Meta’s long-term bull case is firmly intact.
Wall Street has celebrated Meta’s winning combination of AI growth, powered by its strong balance sheet, and the steady expansion of its core business. For example, 44 of the 53 brokerage recommendations Zacks has are “Strong Buys.”