Key Takeaways
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Meta is making substantial investments in AI.
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The company is utilizing AI to boost user engagement and enhance its advertising efforts.
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A reasonable initial valuation alongside strong earnings growth could lead to higher stock prices.
For investors who bought Meta Platforms (NASDAQ:Meta) early on, there isn’t much to lament. Since its IPO in 2012, its stock has surged by 1,520% as of January 14, significantly outperforming the S&P 500 index.
Meta has evolved beyond its startup roots, now boasting a market capitalization of $1.6 trillion. But can it keep up this momentum?
Meta’s AI Investment
Meta is fully committed to investing in artificial intelligence, channeling around $39 billion into capital expenditures. It’s projected that capital spending could reach $71 billion by mid-2024, and CFO Susan Lee mentioned expectations for significant growth in 2026. These investments aim to bolster Meta’s technical infrastructure and reflect Mark Zuckerberg’s strong belief in AI’s potential.
Meta occupies a unique position in the tech landscape, having established itself as a major player. As of the third quarter of 2025, the company had 3.54 billion daily active users across its platforms, including Facebook, Instagram, and WhatsApp, giving it remarkable global reach.
Financially, Meta is thriving, reporting $37.7 billion in net income from $141.1 billion in revenue for the first nine months of 2025. This financial strength enables significant investment in AI technologies, although investors must carefully evaluate the expected returns on such investments—it’s a crucial question that may take time to clarify.
Nevertheless, Meta appears to be flourishing in the AI era. Management highlighted during the Q3 2025 earnings call that AI is enhancing user engagement.
Another critical group for Meta includes its advertising clients. The company brought in $50 billion in advertising revenue in the third quarter, accounting for 98% of its total revenue. The Advantage+ AI tools are helping to lower costs for these advertisers.
Zuckerberg has noted that improving AI advertising capabilities could expand advertising’s share of the global economy. It’s an ambitious outlook, and while it may seem optimistic, he could very well be onto something significant.
Positive Outlook for Investors
Despite its massive scale, Meta continues to grow. Earnings per share are expected to rise swiftly. Such profits will likely lead to an increase in stock prices.
The current valuation seems favorable, too, with shares trading at a forward price-to-earnings ratio of 21.1x.
I believe that Meta is a stock worth considering. It seems poised to outperform the market over the next five years, mainly due to its fair valuation and potential for ongoing earnings growth.
However, it’s tough to assert that it will make investors millionaires. If you’re just beginning your investment journey and have around 30 years until retirement, it’s hard to gauge what Meta will look like in the future.
And for those without much time before retirement, reaching millionaire status might necessitate a significant initial investment.
Ultimately, understanding that this is a top-tier company is key—it’s a worthy investment opportunity, whether or not it results in millionaire status.
Should You Invest in Meta Platforms Now?
Before making a decision about investing in Meta Platforms, keep the following in mind:
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