Key Points
Meta Platforms (NASDAQ: META) has seen its stock price rise over 650% since October 2022, peaking recently at an all-time high. Despite having over 3.4 billion users, the company reported a 6% growth in active users in its latest quarterly report. Advertising revenue increased by 16% year-over-year in Q1. Meta anticipates capital expenditures between $64 billion and $72 billion in 2025 to enhance its AI capabilities, funded by $50 billion in free cash flow over the past year.
The company’s current price-to-earnings (P/E) ratio stands at 27, lower than the S&P 500 average of 30, suggesting it remains an attractive investment opportunity, especially as Meta leverages its extensive user data for AI development. This context positions Meta as potentially undervalued in comparison to other tech giants.
