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Here's How Much You'd Have If You Invested $1000 in Meta Platforms a Decade Ago
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Meta Platforms (META - Free Report) ten years ago? It may not have been easy to hold on to META for all that time, but if you did, how much would your investment be worth today?
Meta Platforms' Business In-Depth
With that in mind, let's take a look at Meta Platforms' main business drivers.
Meta Platforms is the world’s largest social media platform. The company’s portfolio offering evolved from a single Facebook app to multiple apps like photo and video sharing app Instagram and WhatsApp messaging app owing to acquisitions. Along with in-house developed Messenger, these apps now form Meta’s family of products used by almost 3.96 billion people on a monthly basis as of Sep 30, 2023.
Newly introduced metric, which is the family daily active people (DAP) that measures daily users of its family of products, was 3.14 billion, as of Sep 30.
Meta uses metrics like daily active users (DAUs) and monthly active users (MAUs) to measure Facebook’s user base. As of Sep 30, 2023, DAUs and MAUs were 2.085 billion and 3.049 billion, respectively.
Headquartered in Menlo Park, CA, Meta generated revenues worth $116.61 billion in 2022. Advertisement accounted for 97.5% of revenues. Marketers buy ads that can appear on multiple platforms including Meta, Instagram, Messenger and third-party applications and websites.
Meta, thanks to its huge user base gained a significant market share in the advertising space wherein it faces tough competition from Google, Twitter, Amazon and Snapchat-parent Snap.
Meta also faces significant competition from the likes of Apple (messaging), YouTube (advertising and video), Bytedance (social media) and Tencent (messaging and social media).
Meta core app enables people to connect, share, discover and communicate with one other on mobile devices and personal computers. User engagement on core Meta platform is fostered by News Feed that displays an algorithmically-ranked series of stories and advertisements customized for each user.
Instagram is a community for sharing photos, videos and messages, enabling people to discover interests that they care about. People can express themselves through photos, videos and private messaging via Instagram Feed and Stories.
Messenger helps people to connect with friends, family, groups and businesses across platforms and devices. WhatsApp is a simple, reliable and secure messaging application, used by people and businesses around the world to communicate in a private way.
Meta also offers virtual reality (VR) products through its Oculus division.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Meta Platforms ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in January 2014 would be worth $6,394.03, or a gain of 539.40%, as of January 11, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 159.64% and the price of gold increased 58.28% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for META.
Meta is benefiting from steady user growth across all regions, particularly Asia Pacific. Increased engagement for its offerings like Instagram, WhatsApp, Messenger and Facebook has been a major growth driver. The company is leveraging AI to recommend Reels content, which is driving traffic on Instagram and Facebook. Its innovative portfolio, which includes Threads, Reels and Llama 2, is likely to aid prospects. We expect revenues to witness a CAGR of 12.7% between 2022 and 2025. Advertising revenues are expected to witness a CAGR of 13% per our model estimate. However, challenging macroeconomic conditions remain a headwind for Meta’s advertising revenues, along with targeting and measurement headwinds due to Apple’s iOS changes. Slow monetization of Reels, along with mounting operating losses at Reality Labs, are concerns.
The stock is up 10.67% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2023. The consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in Meta Platforms a Decade Ago
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Meta Platforms (META - Free Report) ten years ago? It may not have been easy to hold on to META for all that time, but if you did, how much would your investment be worth today?
Meta Platforms' Business In-Depth
With that in mind, let's take a look at Meta Platforms' main business drivers.
Meta Platforms is the world’s largest social media platform. The company’s portfolio offering evolved from a single Facebook app to multiple apps like photo and video sharing app Instagram and WhatsApp messaging app owing to acquisitions. Along with in-house developed Messenger, these apps now form Meta’s family of products used by almost 3.96 billion people on a monthly basis as of Sep 30, 2023.
Newly introduced metric, which is the family daily active people (DAP) that measures daily users of its family of products, was 3.14 billion, as of Sep 30.
Meta uses metrics like daily active users (DAUs) and monthly active users (MAUs) to measure Facebook’s user base. As of Sep 30, 2023, DAUs and MAUs were 2.085 billion and 3.049 billion, respectively.
Headquartered in Menlo Park, CA, Meta generated revenues worth $116.61 billion in 2022. Advertisement accounted for 97.5% of revenues. Marketers buy ads that can appear on multiple platforms including Meta, Instagram, Messenger and third-party applications and websites.
Meta, thanks to its huge user base gained a significant market share in the advertising space wherein it faces tough competition from Google, Twitter, Amazon and Snapchat-parent Snap.
Meta also faces significant competition from the likes of Apple (messaging), YouTube (advertising and video), Bytedance (social media) and Tencent (messaging and social media).
Meta core app enables people to connect, share, discover and communicate with one other on mobile devices and personal computers. User engagement on core Meta platform is fostered by News Feed that displays an algorithmically-ranked series of stories and advertisements customized for each user.
Instagram is a community for sharing photos, videos and messages, enabling people to discover interests that they care about. People can express themselves through photos, videos and private messaging via Instagram Feed and Stories.
Messenger helps people to connect with friends, family, groups and businesses across platforms and devices. WhatsApp is a simple, reliable and secure messaging application, used by people and businesses around the world to communicate in a private way.
Meta also offers virtual reality (VR) products through its Oculus division.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Meta Platforms ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in January 2014 would be worth $6,394.03, or a gain of 539.40%, as of January 11, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 159.64% and the price of gold increased 58.28% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for META.
Meta is benefiting from steady user growth across all regions, particularly Asia Pacific. Increased engagement for its offerings like Instagram, WhatsApp, Messenger and Facebook has been a major growth driver. The company is leveraging AI to recommend Reels content, which is driving traffic on Instagram and Facebook. Its innovative portfolio, which includes Threads, Reels and Llama 2, is likely to aid prospects. We expect revenues to witness a CAGR of 12.7% between 2022 and 2025. Advertising revenues are expected to witness a CAGR of 13% per our model estimate. However, challenging macroeconomic conditions remain a headwind for Meta’s advertising revenues, along with targeting and measurement headwinds due to Apple’s iOS changes. Slow monetization of Reels, along with mounting operating losses at Reality Labs, are concerns.
The stock is up 10.67% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2023. The consensus estimate has moved up as well.