Latest news with #MetaPlatforms
Yahoo
an hour ago
- Business
- Yahoo
1 Magnificent Stock That Can Make You Richer in 2025 and Beyond
Key Points With billions of daily active users, this dominant internet enterprise benefits from powerful network effects. Being able to generate massive profits helps to fund sizable artificial intelligence (AI)-related investments. Investors can buy shares in this elite company at a reasonable valuation. These 10 stocks could mint the next wave of millionaires › After a turbulent start to the year, the stock market has performed exceptionally well since early April. The major indices are trading in record territory, showcasing investors' bullishness as we look ahead. Despite the optimism, which might make you believe there aren't attractive buying opportunities anymore, investors can still find places to park their capital. One such company is hiding in plain sight. Here's a magnificent stock to consider buying that can make you richer in 2025 and beyond. Dominating the internet economy At a $1.8 trillion market cap, Meta Platforms (NASDAQ: META) doesn't fly under the radar. But the business has many favorable qualities that can draw the interest of investors looking to put money to work in the stock market. For one, this company has a history of strong growth. Revenue increased at a compound annual rate of 18.4% between 2019 and 2024. Meta has increased its ad inventory over the years, while also benefiting from pricing power. In Q1 (ended March 31), the company's average price per ad jumped 10% year over year. Customers continue to find tremendous value in running ad campaigns on Meta properties. Meta is also incredibly profitable, underscoring how lucrative running a scaled digital ad platform can be. In the latest quarter, the company reported a stellar net profit margin of 39.2%. This helped generate $10.3 billion of free cash flow. As of March 31, Meta had $70.2 billion in cash, cash equivalents, and marketable securities, compared to $28.8 billion in long-term debt, on the balance sheet. Everyone knows Meta's family of apps, with services like Facebook, Instagram, WhatsApp, and Threads bringing in a whopping 3.43 billion daily active users. These social media apps benefit from powerful network effects, allowing them to get better as they bring on more users. There is minimal threat of disruption here, in my view, as it would be virtually impossible for rival platforms to reach this kind of scale. What's more, Meta can collect ridiculous amounts of data that further bolsters its competitive position. Meta's AI push Meta is going all-in on artificial intelligence (AI). Founder and CEO Mark Zuckerberg has spent a significant amount of money to hire top talent to create Meta Superintelligence Labs. There are plans to also spend "hundreds of billions of dollars" on AI-related infrastructure called superclusters to support research and development efforts. Investors can view Meta's AI initiatives in a positive light. Or they could be seen as a major risk, as the ultimate payout is extremely uncertain. Time will tell if these moves will boost usage of the family of apps and lead to greater revenue potential down the road. But another negative development to pay attention to is how regulatory actions impact the business. Meta seems to always have a target on its back, as lawmakers look to challenge the company's dominant position. Past acquisitions, data privacy, and content moderation are key issues that regulators focus on. It's anyone's guess how things will play out. Weighing both sides of the argument There's no denying that Meta is one of the best businesses in the world. Its history of strong financial performance, coupled with powerful network effects, supports that perspective. Moreover, it's able to make an aggressive push into AI, for better or worse. No one knows how things will look five or 10 years from now, but Meta is positioning itself to be a leader. The constant uncertainty that comes from being in regulators' crosshairs does add risk for investors. Even so, I still view the stock as a smart buy. As of July 22, Meta shares trade at a price-to-earnings ratio of 27.5. This is a reasonable valuation to pay to add a company to your portfolio that can make you richer in 2025 and beyond. Should you buy stock in Meta Platforms right now? The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $634,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,046,799!* Now, it's worth noting Stock Advisor's total average return is 1,037% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy. 1 Magnificent Stock That Can Make You Richer in 2025 and Beyond was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
an hour ago
- Business
- CNBC
Oppenheimer upgrades Spotify, sees 'longest runway' to add users through 2030
Spotify has the ability to add more global users than Meta Platforms, YouTube, Amazon Prime or Netflix, and to increase revenue by 16% annually through 2030, according to Oppenheimer. Analyst Jason Helfstein upgraded the music streaming platform to outperform from perform and set an $800 price target on the stock, which implies shares can gain nearly 19%. "We believe that SPOT will benefit from the secular tailwind of growing digital audio streaming adoption and that the company's subscription economics are better than most believe," Helfstein wrote in a report on Wednesday. Shares of Spotify have rallied 51% so far this year. The Luxembourg-based company earlier this year recorded its first full year of profitability when it released fourth-quarter results. First quarter results in April showed 12% year-over-year growth in subscribers to 268 million, and a 4 percentage point increase in gross profit margin to 31.6%. Looking ahead, Helfstein said Spotify can make more money from new and existing users. Compound annual growth in revenue through 2030 is expected to reach 16%, boosted by 9% annual increases in subscribers and average revenue per subscriber rising by 21%, he said. "For years SPOT has meaningfully under-monetized its free tier, using this as a conversion funnel, as the company tries to scale advertising," the analyst said. SPOT 1Y mountain Spotify stock over the past year. Helfstein cited several tailwinds for his upgrade, including expectations that: Spotify boasts the "longest runway" among large-cap internet stocks to increase its number of monthly active users (MAU), and capture a majority of listeners that are abandoning terrestrial radio (Spotify in the fourth quarter recorded 675 million MAUs, while analysts polled by StreetAccount expected 664.3 million.) A widely expected, higher-priced 'Superfan' tier will drive revenue Spotify will likely monetize its free/lowest fee over time, unlocking a multi-billion dollar revenue opportunity Spotify is already benefiting from conversion improvements from App Store changes, after a recent court ruling against Apple reduced friction for iOS "free-to-paid" conversion
Yahoo
an hour ago
- Business
- Yahoo
Here's What Drives Meta Platforms' (META) Growth
Sands Capital, an investment management company, released its 'Sands Capital Technology Innovators Fund' Q2 2025 investor letter. A copy of the letter can be downloaded here. Technology Innovators focus on pioneering businesses worldwide that serve as key drivers or beneficiaries of significant long-term changes driven by technology. The fund returned 26.0% (net) in the second quarter compared to a 21.9% return for the benchmark, MSCI ACWI Info Tech and Communication Services Index. Easing geopolitical concerns, renewed AI optimism, resilient macroeconomic data, strong corporate earnings, and technical tailwinds boosted the markets for a quick recovery in the quarter. You can check the fund's top 5 holdings to know more about its best picks for 2025. In its second quarter 2025 investor letter, Sands Capital Technology Innovators Fund highlighted stocks such as Meta Platforms, Inc. (NASDAQ:META). Meta Platforms, Inc. (NASDAQ:META) is a technology company that develops products to connect people. The one-month return of Meta Platforms, Inc. (NASDAQ:META) was -1.72%, and its shares gained 57.38% of their value over the last 52 weeks. On July 23, 2025, Meta Platforms, Inc. (NASDAQ:META) stock closed at $713.58 per share, with a market capitalization of $1.794 trillion. Sands Capital Technology Innovators Fund stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its second quarter 2025 investor letter: "Meta Platforms, Inc. (NASDAQ:META) is the global leader in social networking based on daily active users, engaging nearly half the world's population each month. Despite macroeconomic pressure on digital advertising, the company grew revenue 16 percent year-over-year in the second quarter, supported by its largest quarterly increase in daily active users in four years and a 10 percent rise in average revenue per user. As revenue growth outpaced expenses, operating income rose 27 percent. Amid a pullback in demand from Asia-based advertisers, these results underscore the resilience of Meta's dense, liquid advertising platform and the strength of its idiosyncratic growth drivers, supported by its leadership in artificial intelligence." Meta Platforms, Inc. (NASDAQ:META) is in third position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 273 hedge fund portfolios held Meta Platforms, Inc. (NASDAQ:META) at the end of the first quarter, which was 262 in the previous quarter. In Q1 2025, Meta Platforms, Inc. (NASDAQ:META) reported revenue of $42.3 billion, up 16% from Q1 2024. While we acknowledge the potential of Meta Platforms, Inc. (NASDAQ:META) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Meta Platforms, Inc. (NASDAQ:META) and shared AI stocks in the spotlight. Meta Platforms, Inc. (NASDAQ:META) was a leading contributor to Wedgewood Partners' performance in Q2 2025. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
3 hours ago
- Business
- Yahoo
Meta Platforms Is Helping Power This 6%-Yielding Dividend Stock's Continued Growth
Key Points Meta Platforms is buying all the power of Enbridge's Clear Fork solar energy project. The $900 million solar energy facility will produce 600 megawatts of power starting in mid-2027. The agreement helps support both companies' growth strategies. These 10 stocks could mint the next wave of millionaires › Meta Platforms (NASDAQ: META) has grand ambitions to become a leader in artificial intelligence (AI). The tech titan is pouring billions of dollars into computing power and spending millions to recruit top AI talent. However, Meta can't achieve its bold AI vision without power. That recently led it to ink a long-term contract for 100% of the electricity produced by Clear Fork, a utility-scale solar energy project by Enbridge (NYSE: ENB). That project will help power growth for both companies. A massive and specific power need Meta Platforms has an aggressive AI strategy. CEO Mark Zuckerberg recently stated that the company plans to invest hundreds of billions of dollars in the coming years in massive data centers for superintelligence. It's building several multigigawatt data centers, some of which will eventually scale up to 5 gigawatts. For perspective, 1 gigawatt of electricity is enough energy to power about 750,000 homes for a year. That means Meta Platforms will require a significant amount of electricity in the coming years to support its AI ambitions. However, Meta doesn't want just any power. The company has committed to achieving net-zero emissions across its operations by 2030. Those factors are leading it to work with energy producers like Enbridge to secure more clean energy to power its operations. Adding more power to its growth engine The vast power needs of companies like Meta Platforms are benefiting energy companies like Enbridge, enabling them to expand their operations. The Canadian energy infrastructure giant recently signed a contract with Meta to sell 100% of the power output of Clear Fork, a utility-scale solar energy facility it's building near San Antonio. The project will have the capacity to produce 600 megawatts (MW) of power upon entering commercial service in mid-2027. Enbridge expects to invest $900 million in the project. The agreement will benefit both companies. It helps support Meta's goal of powering 100% of its growing operations with clean energy. Meanwhile, the $900 million project will help boost Enbridge's cash flow and earnings per share starting in 2027. That project further enhances Enbridge's long-term growth profile. The energy infrastructure company ended the first quarter with $28 billion Canadian ($20.6 billion) worth of commercially secured growth capital projects underway. It expects those projects to enter service through 2029. Among the company's many projects is Sequoia Solar, an 815-MW solar project on track to enter commercial service in early 2026. Enbridge is investing $1.1 billion into the project to support the power needs of AT&T and Toyota. Sequoia is part of Enbridge's growing renewable power platform. The company recently completed Orange Grove, a 130 MW solar project backed by AT&T and Fox Squirrel, a multi-phase solar project to support Amazon's growing energy needs. Meanwhile, it's working on developing several other renewable energy projects to support the power needs of data centers. It's currently pursuing about CA$7 billion ($5.1 billion) of renewable projects, part of its CA$50 billion ($36.7 billion) energy infrastructure development pipeline. Enbridge's expanding project backlog supports a clear growth outlook. The company forecasts annual cash flow per share growth of 3% through next year and approximately 5% thereafter. This underpins its expectations of growing its 6%-yielding dividend at a similar annual rate. Enbridge's payout has risen for 30 straight years. A win-win partnership By securing all power from Enbridge's Clear Fork solar project, Meta will advance its AI ambitions while staying on track with its commitment to clean energy. Meanwhile, Enbridge solidifies a long-term customer to support the continued growth of its renewable energy platform and 6%-yielding dividend. This partnership enhances the growth profiles of Meta and Enbridge, which are key beneficiaries of the AI megatrend. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $433,181!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,702!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $641,800!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of July 21, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Matt DiLallo has positions in Amazon, Enbridge, and Meta Platforms. The Motley Fool has positions in and recommends Amazon, Enbridge, and Meta Platforms. The Motley Fool has a disclosure policy. Meta Platforms Is Helping Power This 6%-Yielding Dividend Stock's Continued Growth was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
4 hours ago
- Business
- Globe and Mail
The Zacks Analyst Blog Highlights Meta Platforms, Lam Research, Flex and Seagate
For Immediate Release Chicago, IL – July 24, 2025 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Meta Platforms META, Lam Research LRCX, Flex FLEX and Seagate Technology STX. Here are highlights from Wednesday's Analyst Blog: 4 Technology Stocks Poised to Beat Earnings Estimates in Q2 The technology sector saw growth in the second quarter of 2025, driven by strong adoption of Artificial Intelligence (AI) and machine learning, as well as Generative AI (GenAI). The sector is riding on the ongoing digitalization wave. The rapid adoption of AI, cloud computing, 5G, the Internet of Things, wearables, headsets supporting augmented and virtual reality technologies, drones, robotics, cybersecurity, blockchain and quantum computing is expected to have aided sector participants. A number of technology companies are set to report their earnings results over the next couple of weeks. We have picked four technology stocks — Meta Platforms, Lam Research, Flex and Seagate Technology — which are well-poised to beat earnings estimates this season. Technology Stocks Riding on AI Boom, Investments AI demand is escalating, and that has increased the need for data center capacity expansion. Leading cloud computing providers like Amazon, Alphabet, Microsoft and Meta Platforms have multi-year investment plans to support greater cloud capacity and AI deployment. While Microsoft plans to spend $80 billion, Meta Platforms plans to spend $64-$72 billion on AI-related infrastructure development. The advent of GenAI has further attracted investments. Large Language Models, which form the backbone of GenAI, require significant computational power to process massive amounts of data. This requires massive investment in chips, particularly graphics processing units (GPUs), and energy. Per the Semiconductor Industry Association data, semiconductor sales in May 2024 were $59 billion, up 19.8% year over year and 3.5% month-over-month. In April, sales were $57 billion, up 2.5% month over month. Moreover, the PC segment witnessed growth in the second quarter of 2025. IDC estimates 68.4 million sold units, up 6.5% year over year. In contrast, Gartner estimates shipments of 63.2 million units, up 4.4% year over year. PC shipment is expected to benefit from the ongoing upgrade cycle as support for Windows 10 ends in October 2025 and growing demand for AI-enabled PCs. How to Pick Earnings Estimates Beating Stocks? Finding technology stocks with the potential to beat earnings estimates can be daunting. Our proprietary methodology, however, makes it fairly simple. You could narrow down the list of choices by looking at stocks that have the combination of a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Earnings ESP is our proprietary methodology for determining stocks that have the best chances to surprise with their next earnings announcement. It is the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Our research shows that for stocks with this combination of ingredients, the odds of a positive earnings surprise are as high as 70%. Top Bets Menlo Park, CA-based Meta Platforms has an Earnings ESP of +1.83% and currently sports a Zacks Rank of 1. You can see the complete list of today's Zacks #1 Rank stocks here. Meta Platforms' focus on integrating AI into its platforms — Facebook, WhatsApp, Instagram, Messenger and Threads — is driving user engagement. This is expected to boost second-quarter 2025 ad revenues, which, per the Zacks Consensus Estimate, is pegged at $43.94 billion, suggesting 14.6% year-over-year growth. The social-media giant is set to report on second-quarter 2025 on July 30, 2025. The Zacks Consensus Estimate for earnings has increased four cents to $5.80 per share over the past month and suggests 12.4% growth over the figure reported in the year-ago quarter. Meta Platforms, Inc. price-eps-surprise | Meta Platforms, Inc. Quote Fremont, CA-based Lam Research currently has an Earnings ESP of +2.71% and a Zacks Rank #2. The company is scheduled to report fourth-quarter fiscal 2025 results on July 30. Lam Research is benefiting from ongoing shifts in semiconductor demand, particularly around AI and data center chips. These advanced chips require complex manufacturing, and Lam Research provides the essential tools, like deposition and etching systems, needed to build them. Lam Research's Systems revenues accounted for 64.3% in third-quarter fiscal 2025, and the consensus mark is pegged at $3.22 billion, indicating 48.5% year-over-year growth. The Zacks Consensus Estimate for earnings has been steady $1.20 per share over the past month and suggests 48.15% growth over the figure reported in the year-ago quarter. Lam Research Corporation price-eps-surprise | Lam Research Corporation Quote Singapore-based Flex Ltd is set to report first-quarter fiscal 2026 results on July 24. The company has an Earnings ESP of +2.77% and a Zacks Rank of 2. Flex's to-be-reported quarter is expected to reflect an expanding IP portfolio, recent design wins, acquisitions and strong demand in data center, networking and automotive power electronics markets. Flex continues to benefit from its extensive global footprint of more than 48 million square feet across 110+ sites, enabling efficient, high-scale manufacturing. The Zacks Consensus Estimate for Agility Solutions is pegged at $3.52 billion, indicating 4.5% year-over-year growth. The consensus estimate for fiscal first-quarter earnings has been steady at 63 cents per share over the past 30 days and indicates 23.53% growth over the figure reported in the year-ago quarter. Flex Ltd. price-eps-surprise | Flex Ltd. Quote Dublin, Ireland-based Seagate Technology is scheduled to report its fourth-quarter fiscal 2025 results on July 29. The company has an Earnings ESP of +2.34% and a Zacks Rank #2. Continued momentum in mass capacity revenues, driven by robust nearline cloud demand, propels the growth trajectory for Seagate. Nearline cloud revenues and exabyte shipments are riding on a favorable demand environment amid supply constraints and AI-driven cloud expansion. This bodes well for Seagate's to-be-reported quarter. The Zacks Consensus Estimate for Mass Capacity revenues is pegged at $2 billion, suggesting 39.6% year-over-year growth. The consensus mark for earnings has inched up by a penny to $2.46 per share over the past month and suggests 134.29% growth over the figure reported in the year-ago quarter. Seagate Technology Holdings PLC price-eps-surprise | Seagate Technology Holdings PLC Quote Why Haven't You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Zacks Investment Research 800-767-3771 ext. 9339 support@ Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lam Research Corporation (LRCX): Free Stock Analysis Report Flex Ltd. (FLEX): Free Stock Analysis Report
