Meta Platforms Stock Is Down 28% From Its Peak. Here's How the Rest of 2025 Could Play Out for This AI Stock.

Core Insights - Meta Platforms' stock reached an all-time high of $740.89 on February 14 but has since declined nearly 26% due to economic concerns [1] - Despite recent stock weakness, Meta has returned over 188% over the past five years, indicating long-term growth potential [2] - Meta's AI leadership is bolstered by access to data from over 3.35 billion daily active users, enhancing ad targeting and driving revenue growth [3][4] Financial Performance - In 2024, Meta's annual revenue increased by 22%, with earnings per share (EPS) reaching a record $23.86, marking a 60% rise [5] - Anticipated Q1 2025 earnings report is expected to show revenue growth of approximately 13.5% year-over-year and EPS of $5.22, a 10.8% increase from the previous year [6] - Meta has implemented cost-saving measures since 2022, including a reduced workforce, enhancing operational efficiency and cash flow confidence [10] Market Outlook - Meta's current valuation is attractive, with a forward price-to-earnings (P/E) ratio of 21, below its five-year average of 27, suggesting potential undervaluation [11] - CEO Mark Zuckerberg's comments on capital expenditures, projected between $60 billion and $65 billion for AI infrastructure, will be closely monitored [8] - A solid Q1 earnings report could trigger a stock price rally, positioning Meta to outperform the market if macroeconomic concerns ease [13]