What is driving META's impressive stock performance?

META's transformation into an AI-driven advertising leader, combined with Instagram's revenue strength and substantial infrastructure spending, have fueled the stock's 2x rise in the past 18 months.

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META Stock Doubles in 18 Months, Primed for Bigger Gains

Q: How much revenue and earnings growth is META expected to achieve in the next 3 years?

Financial scenarios suggest META could surpass $265 billion in revenue within three years, with earnings nearly doubling from under $24 per share in 2024 to over $45 per share in 2028.

Q: What is the potential upside for META stock in the next 3-4 years?

Even holding current valuation multiples steady, the META stock could exceed $1,300 in three to four years. If investors assign higher multiples on stronger AI execution and profitability, shares could reach $1,500 or more, representing a true doubling from today's levels.

18 Aug

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Summary

META stock rises from $370 to $785 in early 2024
AI-driven advertising and Instagram's revenue strength drive growth
$265 billion revenue and $45 EPS forecast within 3 years

META Stock Doubles in 18 Months, Primed for Bigger Gains

As of August 18, 2025, META stock (NASDAQ: META) has delivered impressive returns, rising from around $370 in early 2024 to roughly $785 today. This remarkable 2x increase is driven by the company's successful transformation into an AI-powered advertising leader, coupled with the continued strength of Instagram's revenue and substantial infrastructure investments.

Meta's recent financial results showcase accelerating growth across key metrics. In Q2 2025, the company reported revenue of $47.5 billion, a 22% year-over-year increase, and net income climbed 36% to $18.3 billion. Advertising revenue, which hit $46.6 billion, grew 21.5%, with a 9% rise in average price per ad underscoring Meta's ability to command premium pricing through AI-enhanced targeting.

The core of Meta's strategy centers on embedding AI throughout its advertising stack. The adoption of Llama models for ad ranking and content recommendations has enabled a shift from conventional social media ads to precision marketing, driving tangible business results and expanding pricing power.

Beyond automation, Meta's generative AI tools are gaining traction with users and advertisers, opening new revenue opportunities while optimizing existing placements. This positions the company at the forefront of the industry's transition to AI-powered marketing solutions.

Instagram, Meta's most valuable asset, is on track to generate over half of the company's U.S. advertising revenue in 2025, up from just 7% a decade ago. This mix shift toward the higher-margin platform creates substantial room for profitability gains.

Looking ahead, financial scenarios suggest META could surpass $265 billion in revenue within three years, with earnings nearly doubling from under $24 per share in 2024 to over $45 per share in 2028. Even holding current valuation multiples steady, the stock could exceed $1,300 in three to four years. If investors assign higher multiples on stronger AI execution and profitability, shares could reach $1,500 or more, representing a true doubling from today's levels.

While the path to this potential doubling hinges on successful monetization of Meta's AI investments, the company's dominance in social advertising, paired with aggressive AI infrastructure scaling, provides multiple routes to sustained growth. The opportunity is real, but execution risk remains elevated as competition intensifies across core markets.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.