META Stock To $1,500?

Forbes

31-07-2025

Meta stock (NASDAQ:META) has already achieved remarkable gains, growing 2x from $370 levels in early 2024 to approximately $780 at present. But what could drive the stock to double from its current levels over the coming years? The answer is rooted in AI integration – the main growth engine for Meta.
Meta's AI investments are delivering tangible business results. The company's advertising revenue reached $46.6 billion in Q2 2025, up 21.5% year-over-year, with pricing growth continuing to propel the core business. Average price per ad increased 9% in the latest quarter, demonstrating Meta's ability to extract premium value from its AI-enhanced targeting capabilities.
The scale of AI integration is significant. Meta's generative AI tools are finding purchase with both users and advertisers, while the company's Llama models are supporting core ad ranking and content recommendations. This represents a fundamental shift from traditional social media advertising to AI-powered precision marketing.
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Key Growth Drivers
Path to Doubling
For Meta stock to double from current levels, the company needs consistent revenue growth of around 15-20% annually, along with margin expansion. This seems attainable through:
AI Monetization in Core Advertising:
Driving Engagement & User Growth:
Strategic Bets & New Revenue Streams:
Operational Efficiencies & Cost Management:
We anticipate Meta Platforms' revenues to surpass $265 billion within the next three years, with earnings likely to nearly double from under $24 per share in 2024 to over $45 per share in 2028, due to improved profitability. Currently, META stock trades around $780, pricing it at roughly 28 times its trailing earnings. This is considerably lower than some of its competitors, with Amazon trading at 39 times earnings and Microsoft at 41 times earnings.
Given Meta's deep integration of AI and its improving profitability, we foresee an upward revision in its valuation multiple. Even if the stock holds a similar valuation, it could exceed $1,300 within the next three to four years. If investors assign a higher multiple, it would signify more than a twofold increase from current levels. Also see – Meta's Valuation Ratios Comparison.
Potential Headwinds
The most significant risk is the intensifying competition in AI. Competition from cost-efficient solutions like DeepSeek raises questions about Meta's massive AI infrastructure investments and whether the company can maintain its technological moat.
Regulatory pressure on social media platforms could also limit Meta's ability to monetize user data and expand into new markets, particularly in Europe and Asia.
Finally, macroeconomic factors could influence Meta's performance. Economic recessions could curtail advertising investments across its platforms, including Facebook and Instagram. For more details, see – Buy or Sell META Stock? Moreover, high interest rates could render growth stocks like META less attractive than fixed-income options, potentially dampening investor enthusiasm.
Overall, Meta's path to doubling again depends on successfully monetizing its AI investments while achieving a Reality Labs inflection point. The company's dominant position in social media advertising, combined with aggressive AI infrastructure scaling, creates multiple avenues for sustained growth.
However, investors should recognize that reaching $1,500 per share would require Meta to demonstrate that its massive AI spending translates into sustainable competitive advantages and that Reality Labs can transition from a cost center to a growth driver. The opportunity exists, but execution risk remains high as competition intensifies across all of Meta's key markets. Now, we apply a risk assessment framework while building the 30-stock Trefis High Quality (HQ) Portfolio, which has a strong record of comfortably outperforming the S&P 500 over the past four years. Why is that? As a collective group, HQ Portfolio stocks have delivered superior returns with reduced risk compared to the benchmark index; less of a roller-coaster experience, as shown in HQ Portfolio performance metrics.