This Unstoppable Growth Stock Is a Buy Even if the 2025 Nasdaq Correction Evolves Into a Stock Market Crash

Core Viewpoint - The Nasdaq Composite is experiencing a correction, down nearly 9% year-to-date and 13% from its all-time high, but it is not in a full-blown market crash or bear market territory [1] Group 1: Meta Platforms Overview - Meta Platforms is highlighted as a high-conviction growth stock despite broader market declines, with its stock down 14% in the last month [2] - The company operates a family of apps, including Instagram, Facebook, and WhatsApp, which have seen increased engagement, particularly on Instagram [4] - Instagram's Reels feature has transformed the platform into a valuable advertising destination, competing with Google Search for market share [5] Group 2: Financial Performance - Meta's revenue and earnings rebounded to all-time highs after a dip in 2022 and 2023, although the stock has recently pulled back [7] - The majority of Meta's revenue is derived from advertising, making it vulnerable to economic cycles [8] - In 2024, Meta reported a loss of $17.73 billion from its Reality Labs division, impacting its income from operations by 25% [9] Group 3: Valuation and Investment Potential - Despite recent volatility, Meta is considered an excellent value with a price-to-free-cash-flow (FCF) ratio of 29.2 and a price-to-earnings (P/E) ratio of 25.3, trading at a discount to the S&P 500 [12] - Meta ended 2024 with $77.81 billion in cash and equivalents against $28.83 billion in long-term debt, resulting in a net cash position of approximately $49 billion [13] - The company is using free cash flow to fund its investments in AI and Reality Labs, allowing it to invest through economic cycles [14] Group 4: Long-term Growth Outlook - Meta's business model is described as elite, with significant changes in its advertising strategy through Instagram's Reels [15] - Long-term investors are encouraged to consider Meta as a strong buy, especially if its valuation decreases further due to market sell-offs, as there is no evidence suggesting a decline in Instagram's long-term growth potential [16]