Meta Platforms' shares rose 27.7% year-to-date and reached an all-time high of $796.25, outperforming peers such as Apple and Tesla. Strong first- and second-quarter earnings support expectations of continued outperformance over the next year. The stock rallied 55.8% from its April 21 low amid market uncertainty. CEO Mark Zuckerberg is a controversial figure who previously shifted focus toward the metaverse and rebranded the company. Reality Labs remains a drag: Q2 revenue of $370 million fell from $412 million and produced a $4.53 billion operating loss. Investors should not rely on Reality Labs for near-term growth and should prepare strategies across price targets.
So far this year, one of the better performers among the Magnificent 7 has been Meta Platforms Inc. ( NASDAQ: META). Its shares have outperformed the broader market and are currently up 27.7% year to date and recently hit an all-time high of $796.25. For comparison, other Magnificent 7 members have fared much worse. Look no further than Apple Inc. ( NASDAQ: AAPL) and Tesla Inc. ( NASDAQ: TSLA), which are down 9.8% and 22.4%, respectively, since the start of the year.
Furthermore, strong first-quarter and second-quarter earnings reports lend credence to the claim that Meta will continue to outshine its competitors over the next year. That belief has been bolstered by its recent performance. Since hitting its year-to-date low on April 21, the stock has rallied 55.8%. The near-term future of the economy is uncertain-just like the markets themselves-and Meta Platforms CEO Mark Zuckerberg is a controversial figure.
Let's start by addressing the elephant in the room. Investors should not rely on Meta Platforms' Reality Labs metaverse business to drive the company's near-term future growth. In Q2 2025, Reality Labs generated $370 million in revenue, down from $412 million in the prior quarter. During that same time frame, Reality Labs recorded a loss from operations of $4.53 billion.
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