Meta Platforms’ Financial Overview
Meta Platforms (NASDAQ: META), with a market cap of $1.8 trillion, reported a net profit margin of 39.2% and generated $10.3 billion in free cash flow in Q1 2023. The company’s revenue growth is strong, reaching a compound annual rate of 18.4% from 2019 to 2024. As of March 31, it held $70.2 billion in cash and cash equivalents against a long-term debt of $28.8 billion.
Daily Active Users and Adoption of AI
Meta’s apps, including Facebook and Instagram, boast 3.43 billion daily active users, benefiting from powerful network effects. CEO Mark Zuckerberg is leading an aggressive push into artificial intelligence by planning to spend “hundreds of billions” on AI infrastructure and hiring top talent to enhance Meta’s capabilities.
Investment Outlook
As of July 22, Meta’s shares trade at a price-to-earnings ratio of 27.5, presenting a reasonable valuation for potential investors. However, regulatory challenges pose ongoing risks to its market position.
