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Bull of the Day: Meta Platforms (META)

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Meta Platforms (META - Free Report) is building the future of human connection, powered by artificial intelligence and immersive technologies. Apps like Messenger, Instagram, and WhatsApp have been used by billions worldwide, with the company now moving beyond 2D screens toward experiences that foster deeper connections and unlock new possibilities.

The stock has jumped into a Zacks Rank #1 (Strong Buy) following a robust set of quarterly results, with EPS expectations soaring across the board.

Zacks Investment Research
Image Source: Zacks Investment Research

Let’s take a closer look at how the company currently stacks up.

Meta Posts Robust Results

META posted a double-beat relative to our consensus headline expectations, with adjusted EPS and sales growing 38% and 22% year-over-year, respectively. The growth here is significant given META’s already massive size, with favorable advertisement results further driving positivity.

Below is a chart illustrating the company’s revenue on a quarterly basis.

Zacks Investment Research
Image Source: Zacks Investment Research

Notably, daily active people (DAP) across its family of apps reached an impressive 3.5 billion (rounded), reflecting a 6% increase from the same period last year. The growth here is undoubtedly bullish, and somewhat surprising given its already massive base.

As shown below, META has consistently exceeded our consensus expectations concerning its DAP results, ringing in six beats over its last seven periods. 

Zacks Investment Research
Image Source: Zacks Investment Research

Furthermore, ad impressions across its family of apps increased by a strong 11% year-over-year, with the average price per ad also rising by 9%. The company also continued to improve its efficiency, with an operating margin of 43% in the reported period well above the 38% mark achieved in the same period last year.

Bottom Line

Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.

The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.

Meta Platforms (META - Free Report) is currently a Zack Rank #1 (Strong Buy). 


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