Few stocks performed better following the 2022 bear market than Meta Platforms Inc. (Nasdaq: META), the social media giant formerly known as Facebook. CEO Mark Zuckerberg’s foray into the Metaverse was met with a fair amount of derision (and loss of capital). Still, META shares have rallied more than 400% since bottoming under $100 in October 2022. Does META stock price still have more upside? This article will look at the company’s current market position and make a META stock price prediction for the years ahead.
Current Overview of Meta Stock
Founded as a college networking site in 2004 by Harvard student Mark Zuckerberg and four friends, Facebook exploded into the public eye right before the Great Financial Crisis and has become one of the market’s biggest success stories in the post-GFC environment.
Facebook went public in 2012 and at the time was the largest initial public offering (IPO) in market history at $104 billion. In fact, demand for the IPO was so strong that the company increased the offering by 25% shortly before the first day of trading. Despite the eager demand, the stock traded below its $38 IPO price for the first 15 months before rocketing above the $70 level in early 2014. META has suffered heavy drawdowns in 2018, 2020 and 2022, but it has never performed a stock split and has gained more than 1,200% since its 2012 IPO.
Today, META dominates the social media space with three interlinked platforms. Facebook is still around and available to anyone with an email address. The original social networking site still boasts more than three billion monthly active users (MAUs). Additionally, Facebook owns the popular photo and video app Instagram (2 billion MAUs), the international messaging app WhatsApp and the newly launched Twitter (now X) competitor Threads.
Methodology for Stock Price Prediction
Due diligence is essential when making informed decisions about stocks. You must thoroughly research a company to assess its potential for growth and risk. Technical analysis, fundamental analysis and analyst reports and price targets are three key tools that can aid investors in this process.
Technical analysis studies volume and price movement to identify patterns that may predict future price movements. This method assumes that all relevant information is reflected in the stock price.
- Identifying Support and Resistance Levels: Technical analysts look for price levels where buying or selling pressure is likely strong. These levels can be used to identify potential entry or exit points.
- Recognizing Chart Patterns: Chart patterns like head-and-shoulders, triangles and double tops/bottoms can signal potential reversals or continuations of trends.
- Using Technical Indicators: Tools like moving averages, relative strength index (RSI) and Bollinger Bands can provide additional insights into price trends and momentum.
Fundamental analysis involves evaluating a company's financial health and business prospects. This method focuses on factors like:
- Financial Documents: You should familiarize yourself with balance sheets, income statements and cash flow statements to assess profitability, liquidity and debt levels.
- Industry Analysis: Understanding the competitive landscape, market trends and economic and geopolitical factors that may impact the company's performance.
- Management Quality: Evaluating the company's management team's experience, track record and leadership style.
- Valuation Metrics: The price-to-earnings (P/E) ratio, price-to-book (P/B) ratio and dividend yield can help determine whether a company’s stock is overvalued, undervalued or priced fairly.
Analyst reports are published by financial analysts who provide their opinions and recommendations on stocks based on fundamental data, industry trends and management guidance. These reports often include:
- Company Analysis: A detailed assessment of the company's business, financial performance and prospects.
- Price Target: The analyst estimates the stock’s fair value based on their analysis.
- Recommendation: A buy, sell or hold rating for the stock.
While analyst reports can provide valuable insights, it's important to note that their recommendations may not always be accurate. It's advisable to consider multiple analysts' opinions and conduct your research to form a well-rounded view.
Meta Stock Price Prediction for 2024
As of the market close on October 15, META shares are priced at $586.27. The company has accumulated a massive market cap of $1.48 trillion, making it one of only seven global public companies to surpass the trillion-dollar market cap level.
META’s 2024 rise has been meteoric for a large-cap tech stock. Shares are up more than 82.55% over the last 12 months, including 69.30% in just 2024 alone.
The Relative Strength Index (RSI) reads 70.37, showing that the stock has reached overbought status yet. Additionally, the current stock price is trading above the 50-day and 200-day moving averages, which often indicates the bullish trend is intact. However, the stock has been rangebound since April, so investors waiting for the next leg up must practice patience.
Meta Stock Price Prediction for 2025
Moving forward, META must prove that its recent earnings rebound was no fluke. In 2022, the company’s annual revenue declined 1%, marking the first time the company ever brought in less money than the previous year. Zuckerberg’s Metaverse pivot was refigured following layoffs and a massive financial slimdown. A leaner META emerged in 2023 with a new purpose and revenue rebounded. The company earned $139 billion in revenue in 2023, up nearly 16% from 2022.
According to analysts, the META stock forecast for the next year is mostly sunny with a chance of a few clouds. Benzinga is tracking 40 analysts with coverage on META shares and the consensus rating is a strong Buy. The consensus price target is $575, giving the stock another 10% to run from here. Given the stock’s return to profitability (it even pays a dividend now!), it wouldn’t surprise many investors to see the share price breach the $600 level in 2025.
Meta Stock Price Prediction for 2030
Future META stock expectations depend on several factors. The company still dominates its social media competitors, but there are only so many people on the planet to reach and the company must continue to extract more revenue per user to maintain the type of growth investors want to see.
Mark Zuckerberg has made a big bet on the Metaverse, an online virtual world where users would interact using avatars on the company’s suite of social networking apps. But much of the company’s 2022 loss can be attributed to the Metaverse’s Reality Labs division and spending in that area has been cut dramatically.
The Metaverse focus may have been turned down, but the company’s AI expansion is just beginning. META has an unprecedented wealth of content and public posts to train its AI systems, which it began doing in the United Kingdom this month.
Where will META's stock price be in 2030? The future is always uncertain and the company is becoming more of a blue-chip stock than a fast-growing tech firm. Investors should expect good results, but they shouldn’t get too comfortable with 50% to 70% gains each year.
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Frequently Asked Questions
Is Meta stock a good buy?
META is currently rated as a Buy based on consensus rankings from more than 40 analysts tracked by Benzinga. The average price target on the shares is $575, representing an upside potential of about 10%.
What is the true value of Meta stock?
Based on the average META price target, the stock’s true value could be estimated at $586.27. However, fundamental metrics like the P/E ratio and P/B ratio show the company to be slightly overvalued compared to industry peers like Alphabet Inc. (Nasdaq: GOOG).
Who is the biggest investor in Meta?
CEO Mark Zuckerberg remains the largest owner of META shares despite recent sales. On the institutional side, the largest META investors are Vanguard Group, BlackRock Inc. and Fidelity Investments.
Is Meta still growing?
After a decline in 2022, META is back to growing revenue and profits. The most recent quarterly report (Q2 2024) showed revenue of $39 billion, a 7.2% increase over the previous quarter. Earnings came in at $13.5 billion, an 8.9% increase over the previous period.
Will Meta stock hit $1,000?
META’s valuation currently sits at $1.48 trillion, with the stock price around $586. In order to reach $1,000, META would need to nearly double its current market cap. While META is a fast-growing company, it is still volatile and could suffer significant downturns before surpassing $1,000.
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