Meta’s stock declines 9.7% year-to-date but trades at 18x forward earnings with 33% revenue growth and $43.59 billion free cash flow.
Meta’s stock has fallen 9.7% year-to-date to $595.19, underperforming despite robust business metrics. The company’s Q1 revenue surged 33% to $56.31 billion, driven by a 19% increase in ad impressions and a 12% rise in average ad prices.
Meta trades at an 18x forward P/E ratio, below its historical valuation, with an 82% gross margin and 41.44% operating margin. Free cash flow for 2025 reached $43.59 billion, supporting $26.25 billion in buybacks and a $0.53 quarterly dividend. Analysts maintain a consensus price target of $826.01, reflecting 38.8% potential upside.
The company has beaten EPS estimates for six consecutive quarters, with prediction markets assigning an 87% probability of another beat on July 29. Wall Street analysts rate Meta with 57 buy ratings and 6 holds, underscoring confidence in its AI-driven growth trajectory.