Meta: Top Value For Growth Investors

Summary

• Meta Platforms reported strong Q4 earnings, beating both revenue and profit estimates, driven by user growth and robust digital ad spending.
• User growth, ad pricing strength and season factors supported record results for Meta in the fourth quarter. The revenue outlook for Q1 2025 is positive.
• Meta's free cash flow hit $13.2B in Q4 and the social media company achieved FCF margins in excess of 27%, despite AI-driven investments.
• Despite a 77% stock gain in the last year, Meta remains undervalued in the big tech sector, with a forward P/E ratio of 23.6X.
• Risks include a potential digital ad market slowdown, but Meta's user base growth and ad revenue metrics suggest long-term upside potential.

Kira-Yan

Meta Platforms (NASDAQ:META) reported better-than-expected earnings for its fourth fiscal quarter on Wednesday. Meta benefited once again from solid user growth as well as continual momentum in digital advertising spending, resulting in an up-lift to ad prices. Meta also generated

Analyst’s Disclosure: I/we have a beneficial long position in the shares of META, GOOG, AAPL, AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.