Shares of Meta Platforms Inc. (NASDAQ: META) experienced a modest increase of 1.64% during morning trading on April 2, 2025, as the company continues its recovery from a challenging financial period. Despite this uptick, the stock has seen a one-month decline of 10.87% and a year-to-date loss of 2.53%. The recent market activity comes on the heels of Jefferies, a prominent investment firm, lowering its price target for Meta from $810 to $725 while maintaining a "Buy" rating for the stock.
On March 24, 2025, the European Union announced plans to impose a substantial fine of up to $1 billion on Meta for violating strict antitrust regulations outlined in the Digital Markets Act. This decision highlights ongoing scrutiny of the tech giant amid a wider crackdown on monopolistic practices within the industry.
Earlier this year, Meta also revealed a significant $50 billion stock buyback program and initiated a quarterly dividend of $0.50 per share, translating to an annualized yield of 0.33%. While this yield may not seem substantial at first glance, it reflects the company's ongoing commitment to returning value to shareholders.
CEO Mark Zuckerberg has expressed optimism about the company's future, stating that "Meta AI is on track to be the most used AI assistant in the world by the end of the year." This ambitious projection aligns with 24/7 Wall Street's forecast of a 62.82% upside potential for Meta's stock through the end of the decade, suggesting a bright outlook for investors.
Over the past decade, Meta Platforms has seen remarkable growth, with revenue soaring from $12.466 billion in 2014 to over $164 billion in 2024, representing an astounding increase of 1,196.16%. Concurrently, net income has risen from $2.940 billion to more than $62.36 billion during the same period. This impressive financial trajectory has primarily been driven by the company's advertising revenue across its various social media platforms, including Facebook, Instagram, Threads, Reels, and WhatsApp.
Despite diversifying into augmented and virtual reality through its Reality Labs segment, 99% of Meta's revenue still stems from its Family of Apps. As the company looks ahead to the latter half of the decade, Zuckerberg has identified several key drivers that will influence Meta's stock performance.
One of the most significant areas of investment is artificial intelligence. Zuckerberg announced that Meta has released its first frontier-level open-source AI model, which is already gaining traction, particularly with the Ray-Ban Meta AI glasses. The company is also focusing on expanding its AI capabilities, with expectations of capital expenditures between $37 billion and $40 billion this year to support a data center dedicated to AI initiatives. CFO Susan Li noted that the company anticipates "significant capital expenditure growth in 2025 as we invest to support our artificial intelligence research and product development efforts."
In addition to AI, Meta is committed to renewable energy as part of its net zero plan, which aims for complete sustainability by 2030. Since 2020, the company has powered its global operations with 100% renewable energy, securing 10,000 MW of contracted renewable energy across six countries as of 2023. This shift not only reduces utility costs but also diminishes Meta's carbon footprint, with experts predicting that advancements in technology could further lower renewable energy prices by 25% for wind and 50% for solar by 2030.
Meta's focus on improving free cash flow has yielded impressive results, with the company reporting a record free cash flow of $43 billion by the end of 2023, up from $21 billion in 2019. This trend continued into 2024, with free cash flow reaching $52.1 billion. Such financial discipline has allowed Meta to maintain a robust cash position while investing in growth initiatives.
Looking ahead, the consensus median one-year price target for Meta Platforms stands at $761.41, indicating a potential upside of 30.48% from its current share price. Analysts are overwhelmingly optimistic, with 44 out of 48 rating the stock as a "Buy," while only three recommend a hold and one suggests a sell. 24/7 Wall Street's more conservative projection estimates Meta's stock price at $603 by the end of 2025, based on the company's ability to sustain its strong advertising revenue while managing increasing capital expenditures.
In terms of future revenue and earnings, analysts expect Meta to generate approximately $183.459 billion in revenue and $62.250 billion in net income in 2025, with earnings per share (EPS) projected to reach $24.12. Over the following years, revenue is forecasted to continue growing, reaching $205.257 billion in 2026 and $226.332 billion in 2027. However, net income is expected to peak in 2029 at $97.044 billion before slightly declining to $91.227 billion by 2030.
As the company prepares for its first-ever AI-focused developer conference, dubbed LlamaCon, scheduled for April 29, 2025, there is a palpable sense of excitement among investors and industry watchers alike. With Llama, Meta's AI model, having already achieved over 1 billion downloads and approximately 700 million monthly users by the end of last year, the conference is expected to showcase Meta's commitment to leading the charge in artificial intelligence.
Despite recent challenges, including regulatory pressures and stock price fluctuations, Meta Platforms remains a formidable player in the technology sector. With strategic investments in AI, a commitment to sustainability, and a strong focus on shareholder returns, the company is poised for continued growth in the years ahead. Investors will be closely watching how these initiatives unfold as Meta seeks to solidify its position as a leader in both social media and emerging technologies.
