Meta Platforms(US:META) The Motley Fool·2024-12-28 11:00Core Viewpoint - Meta Platforms is positioned for potential strong performance in 2025, drawing parallels to its past growth and valuation trends from 2019 to 2021 [1][8]. Group 1: Company Performance - Meta Platforms operates as a cyclical business, primarily generating revenue from advertising, which fluctuates with business sentiment [2]. - The company's revenue growth is currently robust, indicating that advertisers are optimistic about consumer spending levels, similar to the trends observed from 2019 to 2021 [3][4]. - Historical performance shows that Meta's stock experienced significant gains of 156.6% from January 2019 to July 2021, suggesting a favorable outlook for 2025 [7][8]. Group 2: Financial Metrics - Analysts project a revenue growth rate of approximately 15% for Meta in 2025, which, while slower than the previous period, still reflects strong growth for a mature company [9]. - Earnings-per-share (EPS) growth is expected to be around 12% in 2025, despite anticipated increases in infrastructure expenses related to AI investments [10]. - Meta is currently one of the cheapest large tech stocks, ranking as the second-cheapest among the "Magnificent Seven" when evaluated on trailing or forward earnings [11]. Group 3: Investment Outlook - The similarities in Meta's current setup compared to its performance from 2019 to 2021, combined with its reasonable pricing relative to peers, suggest a strong potential for impressive returns in 2025 [12].