With a market cap of $1.7 trillion, Meta Platforms, Inc. (META) is a leading technology company that connects billions of users worldwide through its social media and messaging applications, including Facebook, Instagram, WhatsApp, and Messenger. Operating through its Family of Apps (FoA) and Reality Labs (RL) segments, Meta also develops virtual and augmented reality products to enhance digital interaction.

Companies valued over $200 billion or more are generally classified as “mega-cap” stocks, and Meta Platforms fits this criterion perfectly. Its deep data analytics and AI-driven personalization further enhance user engagement and ad targeting, giving it a competitive edge over rivals like Google, Apple, and TikTok.

However, the social media company dipped 11.2% from its 52-week high of $740.91, reached on Feb. 14. Over the past three months, shares of META have gained 15.6%, which outpaces the iShares Future Metaverse Tech And Communications ETF's (IVRS) decline of nearly 4% during the same period.

In the longer term, META has rallied 12.4% on a YTD basis, outperforming IVRS’ 3.2% gain. Moreover, shares of Meta Platforms have risen 35.2% over the past 52 weeks, compared to IVRS’ 2.8% return over the same time frame.

META stock has been trading above its 50-day and 200-day moving averages since last year, indicating a bullish trend. 

Shares of Meta rose 1.6% following its Q4 2024 earnings release on Jan. 29 due to stronger-than-expected financial results, particularly in its core advertising business. The company reported EPS of $8.02 and revenue of $48.4 billion, beating the analyst estimate, driven by AI-powered ad enhancements. Advertising revenue surged to $46.8 billion, with a 6% increase in ad impressions and a 14% rise in the average price per ad, showcasing Meta's improved monetization strategies. Additionally, Meta’s optimistic Q1 2025 guidance of $39.5 billion to $41.8 billion in revenue, along with planned AI and infrastructure investments, reinforced investor confidence in its long-term growth trajectory.

In comparison with its rival, Alphabet Inc. (GOOG) has lagged behind META, with a 10.6% decline on a YTD basis and a 21.5% increase over the past 52 weeks.

Due to the stock’s outperformance, analysts are bullish about its prospects. META has a consensus rating of “Strong Buy” from the 52 analysts covering the stock. As of writing, META is trading below the mean price target of $743.55.