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Meta Platforms (META) is up nearly 22% over the past year, but shares are more than 15% off their 52-week high.
However, investors may have reason to continue betting on META shares as the company gears up for the unveiling of its Llama 4 artificial intelligence (AI) model. The company says its latest model includes significant technological advancements, and it plans to release Llama 4 in April 2025.
During the Morgan Stanley Technology, Media, and Telecom Conference, Meta’s Chief Product Officer Chris Cox cited Llama 4’s ability to empower AI agents, software capable of performing complex, multi-step tasks autonomously.
Additionally, Meta will be holding its first LlamaCon AI Conference on April 29. Experts believe that Meta’s AI efforts, like a standalone app for Meta AI rumored to release in Q2 2025, would bolster its competitive edge in the space for generative AI.
About Meta Platforms Stock
Meta Platforms (META) is a social media and online advertising giant with Facebook, Instagram, WhatsApp, and Messenger in its stable. It has a base in Menlo Park, California, and a market capitalization of $1.6 trillion.
META stock has registered a strong three-year return of 234%, outpacing those of the S&P 500 Index ($SPX).
Meta’s valuation compares favorably with high-tech peer companies. It has a trailing P/E ratio of 27.4x and a forward P/E ratio of 24.6x. Return on equity is 38.17%, and return on assets is 25.3%.
Meta Platforms Beat on Earnings
Meta reported Q4 revenue of $48.39 billion, a year-over-year increase of 21%, surpassing expectations. Full-year revenue totaled $164.50 billion, a growth rate of 22% from 2023.
Net income surged 49% year-over-year to $20.84 billion for the quarter and 59% for the full year, reaching $62.36 billion. Diluted EPS for Q4 2024 came in at $8.02, marking a 50% increase from the previous year and exceeding Wall Street expectations of $6.68 by 20.06%.
Operating margin expanded substantially from 41% to 48% in Q4 and from 35% to 42% for the year.
Meta’s portfolio of apps, including Facebook and Instagram, saw year-over-year growth in ad impressions by 6% in Q4 and by 11% for 2024. Average ad pricing increased by 14% in the quarter and by 10% for the year, driving top-line growth.
Capital deployment by the firm was cautious, with capital expenditure at $14.84 billion in Q4 and $39.23 billion for the year. In return, investors received substantial capital back from Meta, with it completing $29.75 billion in share repurchases and paying out $5.07 billion in dividends in the year.
Meta predicts Q1 2025 revenue between $39.5 billion and $41.8 billion, implying year-over-year growth of 8%-15%. Management is optimistic about additional revenue growth in 2025, citing continued investment in AI and automation as drivers.
What Do Analysts Expect for Meta Platforms Stock?
Meta has a “Strong Buy” consensus rating from 53 different analysts, with a mean rating of 4.66 out of a possible 5.
Analysts’ price targets indicate a lot of room for upside. The top target value is $935, and the average price target is $747.70, representing 19% upside from current levels.
Most analysts expect a bullish trend for Meta, with a total of 45 recommending it as Strong Buy.
