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Meta’s shares have substantially increased since their initial public offering.
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Currently, the company is acquiring new users, boosting ad revenue, and growing profits.
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The stock seems fairly priced considering its long-term growth outlook.
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Meta Platforms—the parent entity of Facebook, Instagram, Messenger, and WhatsApp—is the largest company globally. If you had invested $1,000 during its IPO in 2012, it would now be worth around $19,200.
Between 2012 and 2024, Meta’s revenue and earnings per share witnessed compound annual growth rates of 34% and 91%, respectively. In 2012, Facebook had about 1.06 billion monthly active users, but by mid-2025, that number is projected to grow to 3.48 billion daily active users across all platforms.
The company has a virtual monopoly in digital advertising, although competition from Alphabet’s Google is significant, particularly in mixed reality markets through its Reality Labs.
However, as Meta’s stock approaches all-time highs, some investors might hesitate. Personally, I think it’s still an appealing growth stock. Investing a new $1,000 could lead to significant returns in the future.
In 2022, Meta experienced a 1% decline in revenue and a 38% drop in EPS, impacted by Apple’s iOS privacy changes and competition from TikTok. During that period, the company faced challenges and expenses surged, leading to a stock low of $88.37 in November 2022.
Nevertheless, 2023 saw revenue and EPS increase by 16% and 73%, respectively. In 2024, these figures continued their upward trajectory with revenue growth at 22% and EPS at 60%.
This growth surge can be attributed to new AI-driven advertising, an expansion of the Reels platform, and increased ad spending as the macroeconomic environment improved with lower inflation and interest rates.
Additionally, Meta’s daily active users have grown by 8% in 2023, 5% in 2024, and 6% year-on-year in the first half of 2025. The overall ad impressions and average ad prices have also risen, alongside efforts to monetize WhatsApp and the Threads platform with increased advertising.
Furthermore, Meta continues to fund its Reality Labs division through high-margin ad revenue, aiming to establish a presence in the emerging AR and VR markets. Investment in cloud infrastructure and AI services is also on the rise, which might raise short-term costs but could be beneficial in the long run.
Despite it all, Meta’s operating margin has improved—growing from 25% in 2022 to 35% in 2023, and reaching 42% both in 2024 and the first half of 2025—mainly due to better expense management and more high-margin advertising.
Looking ahead, analysts anticipate Meta’s revenue and EPS will grow at rates of 17% and 13%, respectively, from 2024 to 2027. With a P/E ratio of 24 for next year, the company’s user growth and targeted advertising strategy could support long-term expansion.
Unless you think Meta is about to experience a significant downturn, it seems like a solid investment for $1,000. While the extraordinary gains of the past may not recur in the next decade, there are still plenty of avenues for growth.
If you’re considering investing in Meta stock, here are some things to keep in mind:
Our analyst team from Motley Fool Stock Advisor has pointed out other promising stocks, which do not currently include Meta. They believe these 10 alternatives could offer better returns in the near future.
It’s worthwhile to look at stock performance over the long term. For example, Netflix and Nvidia had excellent returns for early investors. Would you have imagined seeing such returns? It’s quite remarkable how these stocks are performing!
The important takeaway here is that while your investment might not yield similarly dramatic returns soon, Meta is consistently growing and adapting its strategies. So, it’s worth considering if this aligns with your investment goals.
With the right research, you can make well-rounded investment choices.
Lastly, if you want to maximize your investing strategy, consider joining a community focused on retail investors. You might gain invaluable insights and recommendations.
