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Platform goal (Nasdaq: Meta) The actions have just established a couple of records. Yesterday (February 11), it increased for the seventeenth consecutive trade day, the longest winning streak for a Nasdaq 100 Sharing since 1990. That is also a record for any stock of 'magnificent seven'!
Should I buy shares of facebook and instagram for my actions and actions of Isa? Let's take a look.
What is happening?
First, why has the action been marking higher? From what I can say, there are three main reasons here.
Number one, the social networks giant reported an incredibly strong fourth quarter at the end of January. Income increased 21% year after year to $ 48.4 billion, while earnings per share ($ 8.02) increased 50%. These figures demolished Wall Street projections for $ 46.9 billion and $ 6.75, respectively.
CEO Mark Zuckerberg said: “We continue advancing well in ai, glasses and the future of social networks. I am excited to see that these efforts are even more climbed in 2025. “
Next, the company plans to invest up to $ 65 billion in artificial intelligence infrastructure (ai) this year. However, unlike many other companies, a goal is already benefiting from ai in a tangible way, using it to improve directed advertising and increase advertisements.
Advertising represents almost 98% of income, so it seems that technology is strengthening its main business. With an amazing daily users of 3.35 billion, the company's platforms remain the dream of an advertiser.
Finally, Tiktok could still be prohibited in the US. Even if Tiktok is bought by an American company, I would probably lose its competitive advantage, since the owner's byteyance is fiercely protective of the powerful recommendation algorithm that keeps users so compromised. He will not only deliver it to a competitor.
Assessment and risks
Although the shares increase 235% in five years, it still seems reasonably valued. Currently, the prognosis profits of next year are quoted at 25 times. According to this metric, goal is cheaper than any other magnificent stock of seven except Alphabet (18).
Looking to the future, analysts expect both income and earnings to grow 11% -16% both in 2026 and 2027. Therefore, despite their already massive scale, it will be forecast that the goal will increase income to $ 239 billion by 2027 (compared to $ 135 billion in 2023).
In terms of risks, I would say that a sudden deceleration in global advertising expenditure is large. We saw this in 2022 when high interest rates and economic uncertainty led companies to reduce marketing budgets and reduce costs.
In addition, the company has and is making massive investments in virtual and Ia. If these do not produce the yields that management believes they will, then investors could become bassists in the action at some point.
Will I buy the shares?
The company's market capitalization now has just under $2TRNtargeting the sixth largest company in the world. While that does not mean that it is not more valuable in the future (I think it will do it), I wonder if you can deliver the type of high yields that I normally look for in a growth stock.
In other words, I prefer to invest in US shares. With the highest market limits (generally $ 50 billion, generally). However, for investors interested in finishing actions, I would say it is worth taking a look, even after getting so rise.
(Tagstotranslate) category. Investiging