Will Meta Stock Reach $1000?

Will Meta Stock Reach $1000? Yes, Meta stock will reach $1000 in the coming years. Read on for details.

Meta recently posted its Q4 result and it missed both its revenue and the earnings target. However, Meta performed better than the expectation.

Meta’s problem has been overdependency on the advertising segment with Metaverse proving to be a disaster. Meta is spending way too much at present on Reality Labs.

Here are a few factors that could help answer, “Will Meta Stock Reach $1000?”

Factors That Could Impact Meta Stock’s Growth

Positive

Rising User Base of Meta’s Social Media Platforms: The strong point of Meta is its huge domain base. Nearly 3.65 billion people are using at least one of the apps by Meta and it grew at 4% YoY in the second quarter of 2022. The growth in active users is astonishing given that it has already reached almost half of the world’s population. It signifies that it will remain the default advertising platform for most companies.

Apple iOS thwarted its advertising growth, but Meta is overcoming those challenges by rolling first-party data and more focus on video-based ads. It is believed that once Meta establishes those changes, and macroeconomic headwinds subside, it’s only a matter of time before Meta’s ad business will stabilize and starts to grow again.

Meta Cheapest FAANG Stock: Bulls believe that Meta is a handsome pick as it is trading at just 11 times forward earnings. That makes it one of the cheapest FAANG stocks by a wide margin. The company is also taking steps to cut down costs by deciding to lay off 13% of its staff or 11,000 employees. That shows that Mark Zuckerberg is taking some tough calls to cut down costs.

CEO has scaled back budgets, reducing perks and shrinking real estate footprints. The company is also working to monetize Instagram reels to compete with TikTok. People also believe that it is a matter of time before TikTok will be banned and that will be a big plus for Meta.

Negative

Failure of Meta’s Reality: CEO Mark Zuckerberg when he launched the Reality Lab or Metaverse, called it to be the company’s future. From Facebook, the company changed its name to Meta. However, Meta’s Reality Lab has not yielded any revenue for the company as of now. Meta’s Reality Labs unit recorded a $4.28 billion operating loss in the fourth quarter of 2022. For the entire of 2022, the total loss from Meta’s Reality Lab was $13.72 billion.

Advertising Yet Not Profitable: The main source of income for Meta is the advertising revenue from its social media platform. In the last quarter of 2022, the ad impressions were up by 23%. For the full year 2022, ad impressions increased by 18% year-over-year and the average price per ad decreased by 16% year-over-year. Revenue was $32.17 billion and $116.61 billion, a decrease of 4% and 1% year-over-year for the fourth quarter and full year 2022, respectively.

Will Meta Stock Reach $1000? Calculation

Meta Platforms Annual EPS
2022	$8.59
2021	$13.77
2020	$10.09
2019	$6.43
2018	$7.57

The average growth of Earnings for Meta Stock in the last five years is: 16%

Considering the EPS growth to be 16%, Meta Stock price will reach $1000 in the next 11-12 years. Therefore, by 2033 or 2034, Meta stock will be valued at $1000.

Will Meta Stock Reach $1000? Conclusion

With the development of internet connectivity and more people around the world being introduced to a cheaper internet connection, the use of Meta’s social media platform is set to rise in the future. With this increase, Meta will be able to increase its ad revenue which at the moment contributes around 98% of the total revenue of the company.

Therefore, Meta is likely to reach $1000 in the future.

Read: Will Microsoft Reach $1000?

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Index or Individual Stocks. Please consult a registered investment advisor to guide you on your financial decisions.