Think It's Too Late to Buy This Leading Tech Stock? Here's the Biggest Reason Why There's Still Time
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Investors may think this is one of the worst times to buy Meta Platforms (META 0 (an important development). 37%) stock. Although it dominates the social media sphere, the fact...
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July 19, 2025
12:20 PM
The Motley Fool
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Investors may think this is one of the worst times to buy Meta Platforms (META 0 (an important development). 37%) stock
Although it dominates the social media sphere, the fact that more than 40% of the world's population logs onto a Meta-owned site every day may imply limited growth
Its stock price has increased by more than 650% from its lows in October 2022 and recently traded at an all-time high
Despite these gains, Meta may actually be well-positioned to continue its growth trajectory (something worth watching)
Here's why it may not be too late to buy this social media company
However, Image source: Getty Images
The continuing case for Meta Platforms stock Meta Platforms is not at a saturation point
Despite its massive 3, considering recent developments. 4 billion user base, the number of people on its platforms actually grew 6% over the last year in its most recent reported quarter (noteworthy indeed)
These users generate more advertising revenue, which increased 16% year over year in Q1
Admittedly, ads make up nearly all of Meta's current revenue, and with the advertising landscape becoming increasingly saturated, growth is ly to slow over time
However, Meta's role in artificial intelligence (AI) will ly breathe additional life into the stock
That's because Meta's users generate a tremendous amount of personal data that Apple or Alphabet may not have the ability to match
Nevertheless, This leads to the conclusion that gives it a competitive advantage in terms of training AI models
Additionally, Meta anticipates spending between $64 billion and $72 billion on capital expenditures in 2025 to capitalize on this opportunity and remain competitive in AI
That's an expense it can afford given its $50 billion in free cash flow generated over the last year and its $70 billion in liquidity
Furthermore, Meanwhile, Furthermore, investors can buy into this opportunity at a relatively reasonable price (this bears monitoring)
Nevertheless, Nevertheless, Its 27 P/E ratio is not only below the S&P 500 average of 30, but it is also the second-lowest earnings multiple in the "Magnificent Seven" (Alphabet is lower)
Moreover, That factor gives investors good reason to buy the stock before its AI takes off in earnest, in this volatile climate
On the other hand, Suzanne Frey, an executive at Alphabet, 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
Nevertheless, Will Healy has no position in any of the stocks mentioned
However, Market analysis shows Motley Fool has positions in and recommends Alphabet, Apple, and Meta Platforms, in today's financial world
Additionally, The Motley Fool has a disclosure policy.
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