Meta Platforms Stock: What Is The 2025 Forecast?

(Preview) Company Update (FB US) (Buy)

Summary

• FB shares rose 18.4% to $207 after results, but are still 31% down over the past year. We believe they can go to $500 by 2025.

• Revenues rose just 6.6% year-on-year in Q1 and are guided to be down slightly in Q2, but there is evidence that FB's strategy is working.

• FB is making progress against iOS anti-tracking features and gaining traction in short-form video. Growth should re-accelerate in H2.

• Just as importantly, management is slowing expense growth, and Mark Zuckerberg has explicitly committed to growing group earnings.

• With FB stock at $207.09, we expect a total return of 140% (26.9% annualized) by 2025 year-end. Buy.

Introduction

Meta Platforms Inc. (formerly Facebook) reported Q1 2022 results overnight (Wednesday, April 27). Shares rose 18.4% aftermarket to $207.09.

Investors were encouraged by evidence that FB's strategy is working. Impressions growth was strong, user numbers rose, and management continues to expect revenue growth to reaccelerate in H2. In addition, expense g…