Meta, formerly known as Facebook, experienced a rollercoaster ride in the stock market over the past couple of years. In 2022, Meta’s stock took a hit as the advertising market slowed down, and the company heavily invested in its metaverse project. However, the tide turned in 2024 as Meta staged a remarkable recovery.
During 2024, Meta made significant strides in its financial performance. The company reported robust financial results and saw notable progress in its artificial intelligence (AI) initiatives. Meta confidently announced that it expected its AI chatbot to become the most widely used by the end of the year.
A pivotal moment for Meta’s stock in 2023 came after the company released its fourth-quarter earnings report in February. Following the positive earnings announcement, Meta’s stock surged by 20% on February 2. In addition, Meta initiated a dividend for its shareholders, providing a reward without necessitating stock sales. The fourth quarter of 2023 saw Meta achieve a 25% increase in revenue to $40.1 billion. The operating margin more than doubled to 41%, driven by earlier cost-saving measures and downsizing efforts. Moreover, Meta’s income tax rate decreased, resulting in a tripled net income of $14 billion, equivalent to $5.33 per share, underscoring the company’s profitability potential.
Throughout the initial three quarters of 2024, Meta continued its impressive growth trajectory. Strong demand for advertising and sustained interest in its products such as Facebook, Instagram, Messenger, and WhatsApp contributed to Meta’s expanding user base. By the end of the third quarter of 2024, Meta had achieved a 22.5% increase in revenue and a 66% rise in earnings per share.
Looking forward to 2025, Meta appears well-positioned for further growth. The company is bolstered by ongoing momentum in the digital advertising sector and AI technologies. Investors are eagerly anticipating the release of Meta’s crucial holiday-quarter results on January 29. While Meta may not benefit from the same margin boost seen in 2024, the company is expected to deliver another year of growth for its investors.
Investors pondering whether to allocate $1,000 into Meta Platforms should take into account expert opinions. The Motley Fool Stock Advisor analyst team has identified what they consider the top 10 stocks for investors at present, with Meta Platforms not making the cut. The selected stocks are projected to yield substantial returns in the years to come, similar to the success achieved by Nvidia, which featured on the list back in 2005.
The Motley Fool’s board of directors includes Randi Zuckerberg, a former Facebook market development director and spokesperson and the sister of Meta Platforms CEO Mark Zuckerberg. Jeremy Bowman, an individual with positions in Meta Platforms, provides further insight. The Motley Fool endorses and recommends Meta Platforms while maintaining a strict disclosure policy.
Overall, Meta’s journey from adversity in 2022 to resurgence in 2024 underscores
