Why This Made Today's List
Reality Labs losses narrowing. Advertising revenue reacceleration not fully priced into current multiple.
30-Day Price Action
Key Metrics
Market Cap
$1.56T
P/E Ratio
28.4
Forward P/E
24.6
Avg Volume
14.8M
EPS
$21.58
Revenue Growth
+22% YoY
Investment Thesis
Meta's advertising business is experiencing a renaissance driven by AI-powered targeting improvements and Reels monetization maturation. The company's massive AI infrastructure investments are yielding returns through better ad relevance and engagement prediction. WhatsApp Business and Messenger monetization remain in early innings. While Reality Labs continues to burn cash, the strategic optionality in AR/VR cannot be ignored as the technology matures.
Catalysts
- +AI-driven ad targeting improvements boosting ROAS
- +Reels monetization approaching Stories parity
- +WhatsApp Business API adoption accelerating
- +Quest 3 holiday sales expected to beat guidance
Risk Factors
- −Regulatory headwinds in EU and potential US action
- −Reality Labs losses remain substantial
- −TikTok competition for younger demographics
- −Apple privacy changes still impacting measurement
Technical Analysis
Current price $612.78 is 64% between support and resistance
RSI (14)
61
Neutral
50-Day MA
$592.10
Above
200-Day MA
$518.40
Above
Trend
Bullish
50/200 MA Cross
Fundamentals
Revenue (TTM)
$156.2B (TTM)
Revenue Growth
+22% YoY
Gross Margin
81.2%
Net Income (TTM)
$54.8B (TTM)
EPS
$21.58
Forward P/E
24.6