Meta Platforms Soars 23% This Year: Is It Time to Invest?

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Meta Platforms, Inc. (META) shares have increased by 22.5% year-to-date (YTD), outperforming the Zacks Computer & Technology sector and its advertising peers, Amazon (AMZN) and Snap (SNAP), which saw declines of 1.8% and 26.6%, respectively. In contrast, Alphabet (GOOGL) shares rose by 32.6% during the same period. By 2028, Meta, Alphabet, and Amazon are projected to absorb nearly 50% of the global advertising spending.

Meta has over 3.48 billion daily users and is focusing on AI integration across platforms like Facebook, WhatsApp, and Instagram to enhance user engagement and boost ad revenues. The Zacks Consensus Estimate suggests 2025 earnings will reach $28.15 per share, reflecting an 18% growth from 2024. Currently, META shares trade at a forward price-to-sales ratio of 8.71, higher than the sector average of 6.73.

Recent enhancements include new features on Threads and Instagram aimed at increasing user interaction, along with security upgrades across its apps. The introduction of features like Teen Accounts on Instagram aims to enhance safety and engagement among younger users.

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