Meta stock (NASDAQ:META) has already achieved remarkable gains, growing 2x from $370 levels in early 2024 to approximately $780 at present. But what could drive the stock to double from its current levels over the coming years?
Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB) delivered a blockbuster earnings report overnight, sending its shares more than 10% higher in after-hours trading on Wall Street. For UK investors, this is worth noting: Meta is a core holding for many tech-focused investment trusts and exchange-traded funds, and sits in countless ISAs and SIPPs.
Meta Platforms (NASDAQ: META) is up 12.05% at press time after delivering second-quarter results Wednesday, after the bell that blew past Wall Street's expectations and triggered a wave of analyst upgrades.
Meta delivered strong Q2 results, beating earnings and revenue estimates, due to robust digital ad market growth and user expansion. Meta's free cash flow remained exceptional, despite a temporary dip, due to aggressive AI and Data Center CapEx investments, positioning Meta for future growth. The company is accelerating its AI growth strategy by developing 'personal superintelligence', an AI-driven tool to boost productivity and creativity.
Meta's artificial intelligence spending spree appears to be paying off with investors, who sent the company's stock soaring after hours on Wednesday following a blowout quarterly earnings report.
Meta's Q2 2025 earnings smashed expectations, driven by robust ad business and AI advancements, sending shares to all-time highs. Despite heavy AI infrastructure and Reality Labs investment, Meta remains highly profitable and continues to deliver strong shareholder returns via buybacks and dividends. My valuation model shows Meta is slightly overvalued at current prices, with a 5-year CAGR below our 15% hurdle rate.
If Mark Zuckerberg is right, the next must‑have wearable won't count your steps or flash your texts. It will out‑think you on everything from homework to holiday planning.
Meta's heavy AI spending is boosting ad revenue — and the company is only getting more profitable in the process.
Meta CEO Mark Zuckerberg plans to continue his company's artificial intelligence spending blitz well into the next year as rival tech giants do the same. While Meta is still planning out next year, the company said its AI initiatives will "result in a 2026 year-over-year expense growth rate that is above the 2025 expense growth.
Meta Platforms, Inc.'s advertising engine remains highly effective, with strong ad price growth across most regions and a user base that continues to expand globally. Aggressive investments in AI and infrastructure, including the Scale AI acquisition, position Meta for sustained future growth despite near-term free cash flow pressure. Despite Meta's outstanding fundamentals, I don't see enough undervaluation to buy META stock at current levels; I'd wait for a 10-15% pullback before adding shares.
Meta Platforms, Inc. (NASDAQ:META ) Q2 2025 Earnings Conference Call July 30, 2025 5:00 PM ET Company Participants Kenneth J. Dorell - Director of Investor Relations Mark Elliot Zuckerberg - Founder, Chairman & CEO Susan J.
Meta Platforms continues to demonstrate exceptional financial performance, driven by its robust ad business and signficant AI investments.