Is Meta Stock a Buy? Key Drivers for 2025

As we continue our £10-a-week investment challenge, on this case for the Week 13 of our growth stocks portfolio, this will brings us to a tech giant that’s been making headlines — Meta Platforms Inc. (NASDAQ: META). Known for its dominance in social media and expanding influence in virtual reality, Meta is an intriguing addition to our Growth Stocks Pie. But is Meta a good stock to buy now? Where will Meta be in 2030? And how can its evolving business strategy boost future returns? Let’s explore why Meta could be a compelling choice for long-term investors.

Just before we go to the article, just a reminder of how we are also doing a dividend stocks portfolio in another £10 a week challenge where you can check all the purchases and its performance on this time. Now, time to focus on our next choice, Meta.

What Does Meta Platforms Do?

Meta Platforms, formerly Facebook, is a global leader in social media and digital advertising. The company owns household names like Facebook, Instagram, WhatsApp, and Messenger, boasting billions of active users worldwide. Beyond social networking, Meta is heavily investing in the metaverse, artificial intelligence (AI), and other advanced technologies.

With its vast ecosystem of platforms and innovative developments, Meta remains at the forefront of the digital economy — a key reason why it’s become one of the most valuable tech companies globally.

Recent Financial Performance: Why Meta Could Be a Buy Now

Meta’s most recent earnings report, released in February 2025, showed impressive results that demonstrate strong financial health and growth potential. Key highlights include:

• Revenue: $40.1 billion for Q4 2024, up 24% year-over-year, exceeding analyst expectations.
• Net Income: $14 billion, reflecting a 35% increase compared to the previous year.
• Earnings Per Share (EPS): $5.33, smashing Wall Street’s forecast of $4.82 per share.
• Operating Margin: Expanded to 39%, showcasing improved cost management and operational efficiency.

These results highlight Meta’s ability to deliver strong profitability despite increased spending on AI and metaverse development. The company’s cost-cutting efforts in 2023 have also significantly improved margins, positioning Meta for sustained growth.

Key Growth Drivers: Why Meta Stock Could Thrive by 2030

If you’re wondering, “Where will Meta stock be in 5 years?”, several strategic developments point to sustained growth:

1. Artificial Intelligence (AI) Expansion
Meta is rapidly enhancing its AI capabilities to improve user engagement, optimise ad delivery, and streamline content recommendations. AI now powers key features across Facebook, Instagram, and WhatsApp, enhancing the user experience while driving higher ad revenue.

Meta’s AI-driven ad targeting has already improved advertising efficiency, resulting in better returns for businesses — a major selling point for marketers.

2. The Metaverse Vision
Meta’s metaverse push is still in early stages, but it remains a long-term growth catalyst. The company’s Reality Labs division, focused on augmented and virtual reality (AR/VR), continues to innovate despite initial challenges.

With its Quest headsets gaining traction and platforms like Horizon Worlds evolving, Meta’s metaverse ambitions could unlock new revenue streams in gaming, e-commerce, and virtual collaboration.

3. WhatsApp Monetisation
Meta is increasingly turning WhatsApp into a revenue generator. The platform’s expansion into business messaging services and e-commerce integration is unlocking fresh income potential. WhatsApp’s dominance in international markets — particularly in regions like India, Brazil, and Southeast Asia — positions it as a powerful growth engine.

4. Cost Discipline and Efficiency
Following extensive restructuring efforts in 2023, Meta has streamlined its workforce and reduced non-essential spending. These measures have boosted profitability, giving the company greater flexibility to invest in growth initiatives without sacrificing margins.

Should You Buy Meta Stock Now?

With Meta’s strong financials, improving margins, and promising growth initiatives, many analysts remain bullish on the stock’s future. As of March 2025, analysts have set the following price targets for Meta:

• Average Price Target: $763.71
• Highest Target: $935
• Lowest Target: $610

Considering Meta’s current share price of around $610, this suggests notable upside potential in the coming months.

Analysts view Meta as a strong buy due to its powerful digital advertising presence, its growing AI capabilities, and the potential monetisation of WhatsApp. While metaverse investments are still in their early days, Meta’s core business continues to thrive — a reassuring factor for investors.

Meta’s Forward Price-to-Earnings (P/E) Ratio: Is It Undervalued?

One way to gauge whether Meta is a good buy now is by examining its forward P/E ratio. As of March 2025, Meta’s forward P/E stands at approximately 25x, which is notably lower than some tech peers like Nvidia and Microsoft. This suggests Meta may be trading at a reasonable valuation relative to its growth prospects.

For context:

• Meta’s P/E Ratio: ~25x
• Nvidia’s P/E Ratio: ~40x
• Microsoft’s P/E Ratio: ~33x

This attractive valuation, combined with Meta’s growth trajectory, makes it appealing for both growth and value investors.

Potential Risks to Consider

Despite its strengths, Meta is not without risks. Here are some factors to watch:

• Regulatory Scrutiny: Ongoing privacy concerns and potential antitrust issues could impact Meta’s business model.
• Metaverse Uncertainty: While the metaverse has potential, it remains a long-term bet with uncertain timelines for meaningful revenue.
• Ad Market Fluctuations: As Meta’s primary revenue stream, digital advertising is vulnerable to economic slowdowns.

However, Meta’s diversification into AI, e-commerce, and messaging services helps mitigate these risks.

Why Meta is Our Week 13 Pick for the £10-a-Week Investment Challenge

Choosing Meta for Week 13 aligns perfectly with our strategy of investing in companies with strong growth potential and long-term resilience. While Meta has faced challenges in recent years, its impressive financial performance, forward-looking innovations, and improving efficiency make it a compelling choice.

With AI advancements driving ad revenue, WhatsApp monetisation unlocking new income streams, and the metaverse offering future potential, Meta presents multiple growth avenues that could significantly enhance shareholder value.

In the ever-evolving tech landscape, Meta’s adaptability, expansive ecosystem, and cost discipline provide strong reasons to believe it will continue to thrive.

Final Thoughts: Is Meta a Good Stock to Buy for the Long Term?

For investors seeking exposure to a tech giant with robust earnings, innovative growth drivers, and a reasonable valuation, Meta Platforms Inc. is a compelling buy. While short-term volatility may persist, Meta’s long-term outlook appears bright, making it a valuable addition to our £10-a-week investment challenge portfolio.

Stay tuned for next week’s pick as we continue building a diversified portfolio with growth potential. Remember that we are updating our main posts for growth stocks and dividend stocks on these links.