META Platforms Inc. (NASDAQ: META) has seen a remarkable 97% stock price increase since early 2024, rising from approximately $350 to $700 per share. In comparison, the NASDAQ index increased by 31% within the same period. Year-to-date, Meta’s stock is up 16%, significantly outpacing the NASDAQ’s 2% increase.
This surge is attributed to a 54% increase in its Price-to-Sales (P/S) ratio, a 26% rise in revenues from $135 billion to $170 billion, and a slight 1% reduction in total shares outstanding to 2.6 billion. Meta’s net income margin has expanded from 29% in 2023 to 39% now, with earnings per share rising 72% to $25.58.
Despite its rapid growth, analysts suggest that Meta’s stock is currently fully priced at approximately $702 per share based on its trailing revenues, indicating possible future volatility given the uncertain macroeconomic environment.
