Meta Platforms (NASDAQ:META) is among the leading mega-cap tech stocks investors basically need to own right now. That’s partly due to the stock’s weighting in most indices (under-weighting this stock relative to any index has proven to be a disastrous exercise in the past) but also due to the company’s continued outperformance relative to its peers coming out of what was a rough 2022.
Meta’s resurgence to become a top growth stock in the social media and digital advertising world has been remarkable. The company has streamlined its operations, focusing on improving efficiency and creating meaningful cash flow and earnings growth with its existing operations. The company’s advertising income rose 19% year-over-year to $39 billion in the latest quarter, highlighting a blistering pace of growth for a company of its size.
If these double-digit revenue and earnings gains continue to be seen in coming quarters, I have no doubt that Meta could lead its mega-cap peers higher in 2025. Here’s the bull case behind what would drive such a move.
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