Meta is an extremely high-quality company trading at a very cheap valuation with the current forward P.E being 18.5. This is a company that has products with 3.56 billion daily active users. Yes, that's right, ***3.6 billion people every day****.* I feel like people forget that they have almost half of the world using their products ***every single day.***
Here are some numbers to show how crazy fast the company is growing
* **Revenue:** Reached **$56.31 billion**, a massive **33% increase** year-over-year ($42.3 billion in Q1 2025).
* **Sustained High Margins:** The company had **41% operating margin** for the last quarter.
* **Ad Impressions:** The total number of ad impressions across its family of apps grew by **19%** year-over-year.
* **Average Price Per Ad:** The amount advertisers are paying per ad jumped **12%** year-over-year, showing strong market demand and more effective AI targeting.
I could go on, but the stock is down right now because of AI concerns and the massive amount of growth capex spend. They are spending this capex to improve their ad targeting, and ***AI is the reason why advertisers are paying 12% more YOY, as AI is increasing the effectiveness of ad targeting***. Once investments in AI start to pull back, the amount of free cash flow Meta will generate will be unphatomable and this will be a stock people looking back 10 years later wish they had bought!