This Stock Is Crushing the S&P 500 in 2025 and Shows No Signs of Stopping

Core Viewpoint - Meta Platforms remains a leading growth stock, with significant user engagement and robust financial performance, positioning it for continued success through 2025 [1][3]. Group 1: Company Growth Metrics - Meta serves 3.48 billion daily active users across its apps, representing nearly two-thirds of the global adult population [4]. - Year-over-year growth metrics for Q2 2025 include: - Daily Active Users (DAP) growth at 6% - Ad impressions growth at 11% - Average ad price growth at 9% - Total revenue growth at 22% [5]. - The growth is driven by AI-powered algorithms and ad targeting systems, which have effectively countered previous challenges from Apple's privacy changes [5][6]. Group 2: Financial Performance - Meta's operating margins have expanded, with Q2 2025 operating margin at 43% and diluted EPS growth at 38% year-over-year [8]. - The company has seen robust earnings growth due to increased sales of AI-driven ads, higher ad prices, and prior workforce reductions [9]. - Analysts project Meta's revenue and EPS to grow by 19% and 18% respectively in 2025, with a compound annual growth rate (CAGR) of 16% and 13% from 2024 to 2027 [11]. Group 3: Market Position and Future Outlook - Meta holds a near duopoly in the digital advertising market alongside Alphabet's Google, providing it with significant pricing power [6]. - The stock is expected to rise approximately 20% to nearly $900 by the end of 2025, assuming it trades at 30 times forward earnings [11].