Meta (META) Stock Forecast & Price Target

Meta Platforms has demonstrated strong financial performance, with advertising revenues reaching $46.8 billion, marking a year-over-year increase of approximately 21%, and exceeding consensus expectations. The company's return on capital has significantly improved, rising from 25.90% to 32.69% over the last twelve months, while economic profit has surged by 67.69%, from $30.72 billion to $51.52 billion. Furthermore, for the 12 months ending December 2024, net sales revenue is projected to increase by 21.94% year-over-year, from $134.90 billion to $164.50 billion, reinforcing the positive outlook for Meta's stock.

Meta Platforms faces significant challenges that contribute to a negative outlook on its stock. Key concerns include elevated investment spending that has not translated into corresponding monetization, leading to decelerated growth and potential profitability issues due to high capital expenditures and depreciation. Additionally, risks such as difficulty in monetizing AI investments, the end of cost-cutting measures, and external pressures from anti-trust regulations and cybersecurity threats further heighten uncertainty regarding the company's future financial performance.