Menlo Park, California-based Meta Platforms, Inc. (META) operates as a social technology company. The company develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables. With a market cap of $1.3 trillion, Meta is also involved in advertisements, and augmented, and virtual reality.
Companies worth $200 billion or more are generally described as “mega-cap stocks,” and META definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the internet content & information industry.
The company's advanced data analytics and AI capabilities enable precise ad targeting, maximizing ad revenue and effectiveness. Additionally, Meta's investments in the metaverse and virtual reality technology position it at the forefront of future digital experiences. The company's global reach and brand recognition further solidify its dominance in the social media and digital advertising markets.
Despite its notable strengths, Meta slipped 4.2% from its 52-week high of $544.23, achieved on Aug. 22 – marking its all-time high. Over the past three months, META stock gained 11.6%, outperforming the Dow Jones Industrials Average’s ($DOWI) 9.1% gains during the same time frame.
In the longer term, shares of Meta rose 47.3% on a YTD basis and climbed 74.9% over the past 52 weeks, outperforming Dow Jones Industrials Average’s YTD gains of 10.3% and 19.3% returns over the last year.
To confirm the bullish trend, Meta has traded above its 50-day moving average since early June, with slight fluctuations, and has remained above its 200-day moving average over the past year.
META's performance is driven by its AI strategy on platforms like Facebook, Instagram, WhatsApp, and Messenger, reaching 3.2 billion daily users. Initiatives like Creator Lab in India and expanding Threads web features are helping connect with creators and users. META is also focusing on clean energy with geothermal projects and AI-driven Instagram monetization.
On Jul. 31, META reported its Q2 earnings results, and its shares closed up more than 4% in the following trading session. The company’s revenue was $39.1 billion, topping the consensus estimate of $38.3 billion. Its EPS of $5.16 beat expectations of $4.70. For Q3, META expects revenue to be between $38.5 billion and $41 billion.
Meta’s rival, Alphabet Inc. (GOOG) (GOOGL) shares lagged behind the stock, with a 17% uptick on a YTD basis and a 21.4% gain over the past 52 weeks.
Wall Street analysts are highly bullish on Meta’s prospects. The stock has a consensus “Strong Buy” rating from the 43 analysts covering it, and the mean price target of $573.29 suggests a potential upside of 10% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
