Meta served 3.48 billion daily active people across its apps in Q2 2025, roughly two-thirds of the world's adult population. AI-powered algorithms and ad targeting systems increased user engagement, ad impressions, and ad prices, improving monetization despite Apple's iOS privacy changes. Reels maintained parity with TikTok, keeping users within Facebook and Instagram, while Threads began hosting more ads. Meta's stock has risen nearly 30% year-to-date and trades at about 27 times trailing earnings, remaining reasonably valued versus growth prospects. Rising revenues and profits provide resources for ecosystem expansion and potential further gains through 2025.
The S&P 500 has risen about 10% this year and is hovering near its all-time highs. That rally was largely driven by the tech sector's robust growth rates, big buybacks, earnings beats across the market, easing trade tensions, and hopes for deeper interest rate cuts. But with a price-to-earnings ratio of 30, the S&P 500 also looks historically expensive. However, some of the S&P 500's top stocks are outperforming the benchmark index by a wide margin but still trading at reasonable valuations.
One of those stocks is Meta Platforms (NASDAQ: META), the parent company of Facebook, Instagram, Messenger, and WhatsApp. Meta's stock has rallied nearly 30% year to date but trades at just 27 times its trailing earnings. Let's see why it crushed the market -- and why it might soar even higher through the end of 2025. Image source: Getty Images. Meta is the world's largest social media company.
That growth was driven by its new artificial intelligence (AI)-powered algorithms and ad targeting systems, which attracted more users and monetized them more effectively. Those upgrades countered Apple's privacy changes on iOS, which throttled its ad sales three years ago. Meta's short-video platform, Reels, kept pace with ByteDance's TikTok and locked more users into Facebook and Instagram. It's also been rolling out more ads on Threads, which is gradually gaining mo
Collection
[
|
...
]