Technology

Meta Platforms (META) Price Prediction and Forecast 2025-2030

Joel South

Published: September 17, 2024 8:23 am

Last Updated: September 17, 2024 4:09 pm

Formerly known as Facebook, Meta Platforms Inc. (NASDAQ: META) is now a household name because of the foundational success it experienced in social media. But it has been over a decade since its IPO on May 18, 2012,

As the only company in the ‘Magnificent Seven’ that has yet to undergo a stock split, an investor who purchased $1000.00 worth of META stock on the day it went public at $38.00 per share would now be sitting on an investment worth $14026.37, good for a gain of 1302.64%.

But since its IPO date, a lot has changed. For starters, on Feb. 1, 2024, the company announced — alongside authorizing a $50 billion stock buyback — that shares of META would begin paying a dividend. And while its current yield of 0.38% may not seem like much, at its current price, that equates to $0.50 per share quarterly, or $2.00 per share annualized.

META is the dominant player in the social media landscape but it is now branching out more broadly into tech, and specifically, the artificial intelligence (AI) space. It is the latter that the company is most heavily investing in now, and for that reason, it is also the primary driver of 24/7 Wall Street price predictions and forecasts for 2025-2030.

Key Points in This Article:

• “Meta AI is on track to be the most used AI assistant in the world by the end of the year,” according to CEO Mark Zuckerberg.
• 24/7 Wall Street projects an 86.68% upside potential for the stock through the end of the decade.
• If you’re looking for a megatrend with massive potential, make sure to grab a complimentary copy of our “The Next NVIDIA” report. The report includes a complete industry map of AI investments that includes many small caps.

Recent META Stock Updates and News

9/17/2024

Meta has announced a ban on Russia state media outlets, including Rossiya Segodnya and RT. The company accused these outlets of engaging in deceptive tactics to conduct covert influence operations online.

9/16/2024

Meta Platforms has announced that it will resume training its AI models using public content shared by adults on Facebook and Instagram in the UK. This decision comes after the company temporarily paused training in the region due to regulatory concerns. Meta will use public posts from adults, including photos, comments, and captions, to train its generative AI models. Private messages and information from users under the age of 18 will not be used.

9/13/2024

Meta, Snap, and TikTok have joined forces to create a new initiative called Thrive. This program aims to reduce the stigma around mental health and combat the spread of harmful content online that promotes suicide or self-harm.

9/12/2024

Meta has introduced a series of updates to its WhatsApp Business app designed to benefit small businesses, especially in India. Small businesses can now apply for a verified badge to enhance their credibility and trustworthiness with customers. The app will also incorporate AI-powered features to streamline tasks and improve customer interactions. In addition, businesses can create more personalized and engaging messages to connect with their audiences.

Meta Platforms’ 10-Year Market Smashing Results

Here’s a table summarizing the performance in share price, revenues, and profits (net income) of META stock from 2014 to 2024:

Revenue and net income in %billions

Over the past decade, Meta Platforms’ revenue has grown 1,196.16% from $12.466 billion to over $161 billion over its trailing 12 months (TTM), while its net income went from $2.940 billion to over $55 billion TTM during the same period, good for an increase of 1,772.18%. The primary driver of that growth over the past 10 years has been ad space for the company’s social media platforms, which include Facebook, Instagram, Threads, Reel, and WhatsApp, among others.

While Meta Platforms has branched out into augmented reality and virtual reality — a business segment it refers to as Reality Labs — 99% of its revenue generation comes from its Family of Apps business segment, as of year-end 2023. But as the company looks to the second half of the decade, Zuckerberg and the company will focus on a few key focus areas that will have a large impact on Meta Platforms’ stock performance.

Key Drivers of Meta Platforms’ Stock Performance

1. AI Investment: Founder and CEO, Mark Zuckerberg announced that Meta Platforms “released the first frontier-level open source AI model, we continue to see good traction with our Ray-Ban Meta AI glasses, and we’re driving good growth across our apps.” While the market for Meta’s social media advertising remains healthy and continues to drive the majority of the company’s revenue, it is focusing heavily on AI investments to expand through the end of the decade. Price-per-ad revenue saw a 10% year-over-year gain, and that success will fund its AI spending aimed at future growth. The company said shareholders should expect between $37 billion and $40 billion in capital expenditures this year that will fund a data center capable of powering its AI initiatives. That is likely to continue into next year, with CFO Susan Li stating that the META expects “significant capital expenditure growth in 2025 as we invest to support our artificial intelligence research and product development efforts.”
2. Continued Renewable Energy Development: According to the company’s net zero plan, which it is aiming to achieve by 2030, “Since 2020, Meta’s global operations have been supported by 100% renewable energy. As of 2023, we have 10,000MW of contracted renewable energy across 6 countries.” As part of its net zero plan, Meta Platforms’ reliance on renewable energy will ultimately decrease the cost of its utility expenses, and ultimately, its carbon footprint through contracted and self-employed green technologies. Renewables already cost less than fossil fuel energy sources, and according to Canary Media, “By 2030, technology improvements could slash today’s prices by a quarter for wind and by half for solar.” The company has announced that its goal for its forthcoming data center is that it is 100% sustainable and net zero.
3. Focusing on Growing Free Cash Flow: Zuckerberg coined 2023 Meta Platforms “year of efficiency,” and there results were staggering. By year-end, the company recorded a record free cash flow of $43 billion. That is up from $21 billion in 2019, marking a nearly 105% increase in its cash position in four years. Meta’s free cash flow TTM stands at $49.74, showing the focus on its bottom line is driving decisions from the top down and having increasingly strong results.

Meta Platforms (META) Stock Price Prediction in 2025

The current consensus one-year price target for Meta Platforms is $575, which represents an 11.05% upside potential from today’s share price of $517.77. Of all the analysts covering META stock, it receives a consensus “Buy” rating with a score of 1.5, with 1 being the strongest “Buy” rating and 5 being the strongest “Sell” rating.

24/7 Wall Street’s forecast projects Meta Platforms’ stock price to be $603 by the end of 2025, based on the company’s ability to sustain its strong ad revenue while increasing efficiency, which in turn will drive its bottom line despite capital expenditures increasing toward its AI objectives.

Meta Platforms Price Estimates 2025-2030

Revenue and net income in $billions

How META’s Next 5 Years Could Play Out

We estimate the price per share of Meta Platforms to be $692 with revenue jumping over $200 billion for the first time in 2026. EPS expectations are for $27.71 annualized. That stock forecast represents a gain of 29.76% over today’s share price.

In 2027 we expect META’s stock price to reach $760 with net income increasing to $78 billion on the back of free cash flow exceeding $60 billion for the first time. That stock price represents a 42.51% increase over today’s share price.

24/7 Wall Street forecasts that META’s share price will reach $809 by the end of 2028, as free cash flow surpasses $70 billion. That price per share represents a 51.70% increase from where the stock is trading today.

Then in 2029, we estimate that Meta Platforms will reach $79.262 billion in free cash flow, $97.044 billion in net income, and over $268 in revenue resulting in a price per share of $914, or 71.39% upside potential from today’s share price.

META’s Price Target for 2030

By the end of the start of the next decade, we forecast that META’s stock price will reach $995.00, or 86.58% higher than it is trading for today, despite estimates that net income will pull back slightly from over $97 billion to over $91 billion. Revenue growth will continue, with an estimated 2.48% year-over-year increase from 2029.

Revenue and net income in $billions