Company Introduction
Headquarters Location: Menlo Park, California
Core Business Summary: Meta Platforms, Inc. is a technology company that operates a social media platform, providing various products and services to connect people and help them build communities.
Overview
$713.08
25.86
27.58
$1,791.36B
Company Overview
Core Products & Services: Facebook, Instagram, WhatsApp, and other products and services
Industry Sector: Technology
Industry Trends
Industry Growth: The global social media market is expected to grow at a CAGR of 12.3% from 2022 to 2027.
Key Demand Drivers: Increasing internet penetration, growing demand for online advertising, and rising adoption of mobile devices
Major Competitors: Alphabet Inc., Twitter Inc., and Snap Inc.
Financials
| 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $17.93B | $27.64B | $40.65B | $55.84B | $70.70B | $85.97B | $117.93B | $116.61B | $134.90B | $164.50B |
| YoY % | +54.2% | +47.1% | +37.4% | +26.6% | +21.6% | +37.2% | -1.1% | +15.7% | +21.9% | |
| EBITDA | $8.17B | $14.77B | $23.23B | $29.23B | $29.73B | $39.53B | $54.72B | $37.63B | $57.13B | $86.88B |
| YoY % | +80.8% | +57.3% | +25.8% | +1.7% | +33.0% | +38.4% | -31.2% | +51.8% | +52.1% | |
| FCF | $6.08B | $11.62B | $17.48B | $15.36B | $21.21B | $23.63B | $39.12B | $19.04B | $43.85B | $54.07B |
| YoY % | +91.1% | +50.4% | -12.1% | +38.1% | +11.4% | +65.6% | -51.3% | +130.3% | +23.3% | |
| EPS | 1.28 | 3.26 | 5.39 | 7.57 | 6.44 | 10.10 | 13.80 | 8.58 | 14.90 | 23.92 |
| YoY % | +154.7% | +65.3% | +40.4% | -14.9% | +56.8% | +36.6% | -37.8% | +73.7% | +60.5% |
Growth Drivers
Historical Growth Drivers: Product innovation, new market entry, and strategic partnerships have driven the company's growth historically.
Future Growth Drivers: Expected to be driven by continued product innovation, expansion into new markets, and increased adoption of e-commerce and online services.
Examples: Meta's investments in artificial intelligence, virtual reality, and e-commerce are expected to drive future growth.
Market Position
Competitive Position: Meta is a leading player in the social media market, with a strong brand and large user base.
Estimated Market Share: Meta's Facebook and Instagram platforms have a combined market share of around 70% in the social media market.
Technological Moat: Meta's strong brand, large user base, and continuous product innovation provide a significant technological moat.
Strengths
- Large and engaged user base
- Diversified revenue streams
- Strong brand and continuous product innovation
- Significant cash reserves
Weaknesses
- Regulatory risks
- Competition from other social media platforms
- Dependence on advertising revenue
- Cyclical exposure to economic downturns
Valuations
Valuations for META
| Formula | Bull | Base | Bear | Margin of Safety |
|---|---|---|---|---|
| Ben Graham | $1.61K | $1.06K | $786.03 | 32.8% |
| Peter Lynch | – | $575.28 | – | -24.0% |
Rule of thumb (Lynch):
PEG ≈ 1 → Fairly valued
PEG < 1 → Undervalued (growth cheap relative to earnings)
PEG > 1.5 → Overvalued
Outlook
Forward Looking Analysis: Over the next 3-5 years, Meta is expected to continue to drive growth through product innovation, expansion into new markets, and increased adoption of e-commerce and online services.
Opportunities: Meta has opportunities to expand into new markets, such as e-commerce and virtual reality.
Risks: Meta faces regulatory risks, competition from other social media platforms, and cyclical exposure to economic downturns.
Numbers: Meta's revenue is expected to grow by around 15% per year over the next 3-5 years.
Stock Price Performance
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Price | 116.06 | 142.28 | 155.39 | 168.70 | 159.60 | 298.66 | 224.85 | 213.07 | 491.35 | 586.00 |
| YoY % | +22.6% | +9.2% | +8.6% | -5.4% | +87.1% | -24.7% | -5.2% | +130.6% | +19.3% |
Stock 3 Year Rolling CAGR
| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | Average |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | 31.38% | 26.42% | 20.25% | 15.47% | 18.60% | 10.70% | 4.58% | 12.15% | 17.44% |
| EBITDA | 41.67% | 25.55% | 8.57% | 10.59% | 22.56% | -1.63% | 1.45% | 32.17% | 17.62% |
| FCF | 42.23% | 9.75% | 6.66% | 15.45% | 22.63% | -6.94% | 3.88% | 41.60% | 16.91% |
| EPS | 61.48% | 32.42% | 6.11% | 10.09% | 28.92% | -5.29% | 2.59% | 40.74% | 22.13% |
| Price | – | 10.22% | 5.84% | 0.90% | 20.97% | 12.10% | -10.65% | 29.77% | 9.88% |
