META Keeps Growing

Core Viewpoint - Meta's stock is not a concern due to its strong operating performance, financial health, and leadership in digital advertising, supported by its transformation into an AI-driven advertising powerhouse [1] Financial Performance - Meta's market capitalization is $1.9 trillion, with revenues growing 19% from $143 billion to $170 billion over the last 12 months, averaging a growth rate of 13% over the past three years [7][10] - Quarterly revenues increased by 16.1% to $42 billion in the most recent quarter, up from $36 billion a year earlier [10] - Operating income over the last 12 months was $73 billion, resulting in an operating margin of 42.9% and a cash flow margin of 56.4%, generating nearly $96 billion in operating cash flow [11] - Net income reported was nearly $67 billion, indicating a net margin of approximately 39.1% [11] Financial Stability - Meta's debt stood at $50 billion, with a debt-to-equity ratio of 2.7%, while cash (including equivalents) constitutes $70 billion out of $280 billion in total assets, resulting in a cash-to-assets ratio of 25.1% [12] Stock Performance - Meta's stock dropped 76.7% from a peak of $382.18 on September 7, 2021, to $88.91 on November 3, 2022, compared to a peak-to-trough decrease of 25.4% for the S&P 500 [13] - The stock fully recovered to its pre-crisis peak by January 19, 2024, and rose to a high of $790.00 on August 12, 2025, currently trading at $732.17 [14] Resilience - Meta experienced a decline slightly better than the S&P 500 during various economic downturns, assessed based on the extent of the stock's decline and the speed of its recovery [9]