Meta Platforms(US:META) 美股研究社·2025-05-12 10:48Core Viewpoint - Meta's stock is significantly undervalued despite a strong financial performance, with a notable drop in stock price not reflecting its revenue and profit growth [1][16]. Financial Performance - In Q1, Meta reported a revenue of $42.31 billion, a year-over-year increase of 16.07%, and a net income of $16.64 billion, up 34.56% [1][12]. - The earnings per share (EPS) was $6.43, exceeding Wall Street's expectations by $1.22 [1]. - Meta's gross profit increased by 16.53% to $34.74 billion, with a gross margin of 82.11% [12]. - EBITDA for Q1 was $21.46 billion, reflecting a 24.80% increase, with a profit margin of 50.70% [12]. Stock Performance - Meta's stock peaked at $740.91 but fell by 34.59% to $484.66, with a current trading multiple of 27.55 times 2025 earnings [1][3]. - The stock is currently trading at less than 20 times expected earnings, indicating potential for significant upside if growth continues [16]. AI and Business Strategy - Meta is heavily investing in AI across five key areas: improving advertising, enhancing user experience, business messaging, Meta AI, and AI devices [5][10]. - AI is being utilized to enhance advertising capabilities, with a new ad recommendation model increasing conversion rates by 5% [6]. - The company is testing AI business agents for customer support and sales on platforms like WhatsApp and Messenger [7]. Capital Expenditure and Future Outlook - Meta's capital expenditures are projected to rise significantly, from $60-65 billion to $64-72 billion by 2025, primarily for AI infrastructure [11]. - The company holds $28.75 billion in cash and $41.48 billion in short-term investments, providing a strong liquidity position [14]. - Meta has repurchased $103.2 billion in stock over the past 11 quarters, indicating a commitment to returning value to shareholders [14]. Market Position and Growth Potential - Despite macroeconomic concerns, Meta's focus on AI is expected to drive future growth in advertising, user engagement, and new business pillars [16]. - Analysts believe that if Meta maintains its growth trajectory, its stock price could exceed $1,000 in the coming year [16].