Investors may hesitate to buy Meta Platforms stock due to its substantial growth and current high valuation. However, Meta continues to grow its user base, with a reported 6% increase in the last year. Advertising revenue also increased by 16% year over year. Meta's significant investment in artificial intelligence could provide a competitive edge, bolstered by its vast user-generated data. The company plans to spend up to $72 billion on capital expenditures by 2025. With a relatively low P/E ratio, the stock remains an attractive buy for investors before the AI sector potentially thrives.
Despite its massive 3.4 billion user base, the number of people on its platforms actually grew 6% over the last year in its most recent reported quarter.
Meta anticipates spending between $64 billion and $72 billion on capital expenditures in 2025 to capitalize on the opportunity and remain competitive in AI.
Its 27 P/E ratio is not only below the S&P 500 average of 30, but it is also the second-lowest earnings multiple in the "Magnificent Seven".
Meta's role in artificial intelligence (AI) will likely breathe additional life into the stock, leveraging unique personal data unmatched by competitors.
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