Meta Platforms has reached an all-time high share price of $740, driven by strong analyst upgrades and robust growth in its advertising sector. The company has transformed from struggling with slowing growth to achieving a 16% year-over-year revenue increase, amounting to $42.31 billion in the first quarter of 2025. Meta's profitability has surged, with net income growing by 35% year-over-year to $16.64 billion and diluted earnings per share rising by 37%. This growth trajectory underscores its leadership in the AI sector and successful implementation of cost-reduction strategies.
Wall Street remains bullish on Meta, and for good reason. Over the past two years, Meta has transitioned from a company grappling with slowing growth and bloated costs to one that is lean and highly profitable.
Meta's first-quarter 2025 earnings results are a prime example. Revenue of $42.31 billion represented a 16% year-over-year increase. Much of Meta's growth is attributed to its core advertising business.
Meta's profitability is even more impressive. It grew net income by 35% year-over-year, reaching $16.64 billion in Q1. This translates to diluted earnings per share (EPS) of $6.43, a 37% year-over-year increase.
With META's year-on-year EPS growth currently at 60%, while the sector median wallows at 19%, this suggests that META is well ahead of its peers.
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