It’s been a tough earnings season for the market… particularly for Big Tech.
The S&P 500 is down about 2.5% and the Nasdaq is down about 4% in the last five trading days.
And while tech giants Microsoft (MSFT), Amazon (AMZN), and Alphabet (GOOG) put up impressive numbers, all these stocks are pulling back.
But one stock is bucking the trend: Meta (META).
Over the last five days, META is up around 4%.
And this company isn’t slowing down anytime soon.
In fact, this stock is easily one of the best investments in the market.
Today, we’ll explain why this company should be in every investor’s portfolio. Let’s start with an overview of Meta’s latest earnings…
You need exposure to this tech darling
On July 31, Meta posted stellar Q2 2024 earnings results.
Earnings per share (EPS) hit $5.16, higher than the consensus estimate of $4.72. And the company generated $39.07 billion in revenue (vs. expectations of $38.26 billion). Better yet, that’s 22.1% higher vs. last year’s Q2. That’s incredible growth for a company of this size.
Meta’s strong showing was driven in part by increased ad revenue and a growing user base. It saw a 10% year-over-year (YoY) increase in ad impressions across its platforms (including Facebook, Instagram, and WhatsApp)… and its monthly active users grew by 7%, reaching 3.27 billion. To put this number into perspective, that’s nearly half of the world’s population engaging with Meta’s products every month.
The company’s other major growth driver this quarter was its strategic investments in AI technology. The company is planning to pour a large portion of its $30–40 billion capital expenditures budget into AI.
It’s worth noting that Meta aims to stand out from the crowd with its AI investments. For instance, its Llama 2 generative text programs are one of the only open-source AI platforms. That means developers can modify the code however they want—allowing the software to become more advanced, secure, and have much broader support.
Meanwhile, its Ray-Ban Meta smart glasses and Quest 3 VR headsets are gaining serious traction thanks to AI integration. And let’s not forget the company’s partnership with chip leader Nvidia (NVDA).
Put simply, Meta is positioning itself at the forefront of the AI revolution—which will drive growth for years to come.
And it gets better…
Believe it or not, Meta is relatively cheap at current valuations.
As we mentioned above, the company’s sales are growing at over 20% YoY… and earnings are growing at 30%. Yet, the stock is trading at just 19x forward earnings.
To put those numbers into perspective, the S&P 500 is trading around 20x forward earnings… yet it’s only growing earnings at 11%.
Bottom line
Meta’s impressive earnings report highlights its status as a standout player in the tech sector. The company’s unparalleled user base makes it the ideal platform for advertisers… And its strategic focus on AI creates a long-term growth trajectory for the stock.
Better yet, this powerhouse is downright cheap, considering its remarkable upside potential—making it one of the best investments in the market.
If you don’t have exposure to Meta, now’s the time to get it.
And for more of the best stocks at the forefront of the AI growth trend, join Curzio AI. Several of our holdings are up double digits in just a few months… with way more room to run.
