After a stellar 150% rally in 2023, Meta has recently offered investors a rare gift: a pullback. This comes hot on the heels of a Q3 performance that can only be described as a financial tour de force, with revenues and earnings per share soaring by 23% and 168% year-over-year, respectively.
Yes, you read that correctly—a 168% leap in earnings per share. The secret? A combination of revenue renaissance and a dramatic expansion in profit margins, with operating margins doubling from 20% to a staggering 40% in just one year. Factor in Meta’s aggressive stock repurchase program, and you have a recipe for a shareholder windfall.
Mark Zuckerberg’s proclamation of 2023 as the “year of efficiency” was no mere slogan. The integration of AI across Meta’s platforms has been nothing short of revolutionary, promising not just a one-time surge but a sustainable model for heightened profitability.
The recent dip? Merely a blip against the backdrop of Meta’s financial juggernaut. With shares trading at a forward P/E of roughly 18 times for 2024, this is a “buy-the-dip” moment that savvy investors live for.
Wall Street’s average price target of $380 suggests confidence in Meta’s ascent to new heights. But here’s where I’ll part ways with the analysts—I foresee even greater potential. Meta’s Q3 wasn’t just good; it was a record-breaker. And with advertising revenue rebounding sharply, the primary engine of Meta’s success is firing on all cylinders.
Meta’s core business is not just surviving; it’s thriving. And with projected revenue growth of 22% for Q4, Meta’s valuation is looking increasingly attractive.
Remember the last time Meta’s stock was this undervalued? It preceded a meteoric rise. History has a habit of repeating itself, and Meta is poised for another impressive run.
