"Meta Platforms (META) has carried its post-Q2 momentum into the present, now trading about 42% above last year's levels-a striking feat for a $1.8 trillion company. Even so, relative to its growth, the stock is still valued more like a bargain than a premium name within the Mag-7. Growth drivers are lining up: AI-powered ad systems, Reels monetization, WhatsApp business messaging, expanding reach for Meta AI, and steady progress in AI hardware through its Ray-Ban glasses product line."
"Meta's Q2 was nothing short of a showcase. Revenue reached $47.5 billion (+22% YoY), operating margin widened to 43%, EPS came in at $7.14 (+38% YoY), and daily active people climbed to 3.48 billion (+6%). Ad impressions grew 11% while cost per ad rose 9%-the ideal balance that signals a high-performing recommendation engine. At Meta's scale, these growth rates border on the unbelievable."
Meta trades about 42% above last year and its valuation remains nearer a bargain than a premium among Mag-7 names. Q2 revenue reached $47.5 billion, up 22% year-over-year, operating margin widened to 43%, EPS rose 38% to $7.14, and daily active users reached 3.48 billion. Ad impressions increased 11% while cost per ad rose 9%, indicating a high-performing recommendation engine. Management guided Q3 revenue implying about 21.5% year-over-year growth. Growth drivers include AI-powered ad systems, Reels monetization, WhatsApp business messaging, expanded Meta AI reach, and progress in AI hardware via Ray-Ban glasses. A price target of $850 is projected.
Read at TipRanks Financial
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