Should You Buy Meta Platforms Stock Before April 30?

Core Viewpoint - Meta Platforms is experiencing a significant decline in stock price despite a strong earnings growth in 2024, presenting a potential buying opportunity for investors ahead of its upcoming financial report on April 30 [3][15]. Group 1: Financial Performance - Meta generated a record $164.5 billion in total revenue during 2024, marking a 22% increase compared to the previous year, the fastest growth rate since 2021 [9]. - The company's net income soared by 59% to a record $62.3 billion for the year, translating to $23.86 in earnings per share (EPS) [10]. - Analysts forecast a deceleration in earnings growth for 2025, with an expected increase of 11% in Q1 and just 4.6% for the full year [11]. Group 2: AI Initiatives - Meta is rapidly becoming a leader in artificial intelligence, utilizing complex algorithms to enhance user engagement on its platforms [4]. - The newly launched Meta AI had 700 million monthly active users by the end of 2024, reflecting a 50% increase from the previous quarter [6]. - Meta plans to invest up to $65 billion in data center infrastructure and chips in 2025 to support its AI initiatives [8]. Group 3: Market Conditions and Valuation - Meta's stock is currently trading at a price-to-earnings (P/E) ratio of 21.3, which is a 16% discount to its five-year average of 25.3, making it an attractive valuation [15]. - The broader market sell-off, driven by tariffs imposed by President Trump, has contributed to the decline in Meta's stock price, which is down 24% from its all-time high [3]. - Despite potential economic slowdowns, the long-term outlook for Meta remains positive, especially for investors willing to hold the stock for three to five years [18][19].