Meta Platforms (NASDAQ: META) is currently the top-performing stock among the Magnificent Seven, with a year-to-date return of 16.7%. In comparison, only Microsoft has achieved a double-digit gain, while Nvidia has lagged with a return of just 6%.
Meta has invested tens of billions in artificial intelligence and plans to automate ad creation and placement across platforms like Facebook and Instagram by 2026. The company’s Threads product has grown to attract between 320 million and 350 million monthly active users, up from 150 million a year ago. This growth, along with better-than-expected earnings, has prompted analysts from firms such as Bank of America and RBC to raise their price targets for Meta.
Despite its promising prospects, Meta’s price-to-sales ratio stands at 10x, significantly higher than the average of 2x-3x in the tech sector, potentially making it less attractive for value investors.
