Over the past decade, Meta Platforms (NASDAQ:META) stock has outperformed the market consistently, with an excellent annualized increase of 10.13%.
If an investor had bought $100 of META stock ten years ago, it would now be worth $646.47 at the current price of $305.07.
Meta Platforms, with a market cap of $784.99 billion, is a dominant player in the industry. Starting as Facebook, it now includes Instagram and WhatsApp in its diverse app portfolio, serving billions of users globally alongside its Messenger app.
It’s obvious that Meta is doing something right. We can attribute its success to its ability to stay ahead of the competition and anticipate customer needs. The company’s innovative approaches to marketing, design, and product development show this.
Meta Stock and Vietnam
Meta Platforms is increasing its metaverse technology investments in Vietnam. Joel Kaplan, Meta’s VP for US Public Policy, mentioned that the company started moving production to Vietnam four years ago, but the COVID-19 pandemic delayed further progress.
Meta is looking to expand its presence in Vietnam after a meeting between its executives and Vietnam’s Prime Minister Pham Minh Chinh at Meta’s headquarters.
Both nations reaffirmed their commitment to partnerships in science, technology, and research and development, acknowledging the contributions of US companies like Meta to Vietnam’s Comprehensive Strategic Partnership.
Kaplan mentioned more collaborations with Hanoi, such as the National Innovation Center and the Vietnam Government Portal, to support Vietnam’s digital transformation.
Meta also plans to aid SMEs and contribute to various sectors, including AI, digital transformation, and the digital economy.
META Fundamentals
Meta Platforms, valued at $784.99 billion, emerged from a single Facebook app and now offers a diverse app portfolio serving billions worldwide.
The company uses metrics like daily and monthly active users to measure Facebook’s reach and impact. Earnings and revenue have also grown steadily over five years.
Meta Platforms exhibits a robust 17.2% return on equity, ensuring substantial returns for shareholders, and maintains a healthy 18.3% net margin.
Meta relies heavily on advertising, with over 98% of its Q2 2023 revenue coming from this source, expected to grow further with improved ad targeting. It’s so-called “Year of Efficiency” has enhanced its profitability through cost-cutting and AI investments, shaping its future business strategy.
META Stock Will Continue to Soar
Recently, Morgan Stanley (NYSE:MS) analyst Brian Nowak gave Meta Platforms an “overweight” rating, with a surprising price target of $375 for META stock, suggesting significant potential upside.
Nowak predicts Meta Platforms’ earnings to reach $20 per share by 2024, driven by untapped revenue potential from Facebook’s Reels feature, which is akin to TikTok.
This projection surpasses Wall Street’s expectation of $16.85 per share in 2024. While it’s an ambitious estimate, I concur with Nowak, as Reels may be underestimated compared to TikTok and Elon Musk’s X/Twitter.
The outcome of Reels on META stock hitting $375 is uncertain, but Nowak maintains optimism.
Meta’s success relies on user engagement across its platforms, which drives ad exposure and benefits advertisers. To sustain ad success, maintaining user engagement is crucial.
Final Thoughts
Meta is a major social media player with a vast user base and a focus on innovation and emerging tech like Oculus VR and Portal devices. It has diverse revenue streams including e-commerce, payments, gaming, and cloud services, making it an attractive choice for growth investors in the upcoming bull market.
Moreover, the stock has outpaced the S&P 500 in 2023, and its upward trend may lead it to surpass its 2020 peak. Compared to Nvidia and other AI stocks, it offers value and potential for investors despite short-term volatility.
The market appears to have forgotten about the company’s push into the metaverse. That’s a good thing. So long as investors continue to focus on the company’s solid cash flow producing machine, and recognizes that anything that comes from the metaverse is cream, this will be a stock no one will be selling anytime soon.
On the date of publication, Chris MacDonald has a LONG position in META. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.