With the company cementing its status as a top Wall Street investment, many have pondered if Meta (META) can continue this year’s 50% surge and translate it into similar gains entering 2025. Although the company is facing a plethora of questions, it is still set up to be a big winner when the calendar turns.
This week, the US announced that a Federal Trade Commission (FTC) antitrust suit against the firm is set to go to trial. Moreover, the company had just been slapped with an $840 million fine from the European Union (EU) regarding its competitive practices. With just two months until 2024 in the history books, could these developments force it to have a slow start to the coming year?
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There is no denying that Meta (META) has continued to establish itself atop the tech sector. One of the Magnificent Seven, the company has gone into overdrive throughout 2024. It has continued to grow its vast array of social media platforms while developing into emerging sectors like AI and wearable technology.
The question is, can META continue to be a dominant stock and carry its 50% surge into 2025? The stock is up now 70% year to date, showing it is a clear winner for investors. Moreover, it has continued to set all-time high marks with a focus on spending to meet demand across technology.
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Currently, Meta has a buy rating, with a reasonable 12-month forecast of around $630. In its latest earnings report, it boasted revenue that was above expectations. That field bullish momentum has continued to have the company’s stock gaining in price for nearly two years.
However, there is still some concern from analysts. Specifically, HSBC gave the firm a neutral rating prior to the latest earnings report. Additionally, BMO Capital Markets did the same. Both firms noted Meta’s rising spending as a reason for skepticism regarding its performance entering the new year.
Virtual reality, AI, and the newly announced Orion Smart Glasses have dominated the company finances. While they should bring in revenue, that will take time. The question is, can Meta continue winning while they wait for those returns? To this point, the market has seemed willing to do as much. Therefore, the consensus expectation of another 40% surge by the end of 2025 seems reasonable.
