Why Meta is the Best Stock Right Now?

One of the biggest reasons behind Meta’s growing dominance is its unmatched commitment to artificial intelligence
Why Meta is the Best Stock Right Now?
Written By:
Pardeep Sharma
Reviewed By:
Manisha Sharma
Published on

Overview

  • Meta Stock rises to $765 with $1.86T valuation, outpacing the S&P 500.

  • $600B artificial intelligence investment drives long-term growth.

  • Strong analyst targets up to $863 highlight bullish stock market outlook.

Meta Platforms Inc., the parent company of Facebook, Instagram, WhatsApp, and Threads, has become one of the most powerful forces in the global stock market. With a market capitalization close to $1.86 trillion and shares currently trading around $765.70 as of September 10, 2025, Meta stands as one of the largest companies in the world. 

The Meta stock price is showing remarkable strength, rising 1.78% in its latest session, comfortably outpacing the S&P 500’s modest 0.27% increase. Over the past year, it has traded between $479.80 and $796.25, and with analysts now setting targets in the range of $816 to $863, investors are finding renewed reasons to believe this stock is one of the strongest in the market today.

Heavy Investment in Artificial Intelligence

One of the biggest reasons behind Meta’s growth is its commitment to artificial intelligence. The company is on track to spend more than $600 billion on AI infrastructure through 2028, with projects continuing well into the next decade. 

This scale of investment shows Meta’s determination to stay ahead in the technology race. Massive new data centers, some described as being the size of Manhattan, are being built to support superintelligence research and advanced AI models.

This spending not only strengthens Meta’s own capabilities but also creates ripple effects throughout the tech sector. Suppliers of chips, networking hardware, and energy solutions are benefiting from Meta’s demand. For example, Ciena, a networking company, saw a 20% revenue jump because of large data center orders from Meta. 

The company has even launched a new division called Meta Superintelligence Labs in 2025 to focus on advanced AI research and the pursuit of artificial general intelligence. Such moves show that Meta is not only a user of AI but also a builder of the next generation of AI infrastructure.

Also Read: Meta Stock Performance: Still a Strong Investment in 2025?

Growing Institutional Confidence

Another clear sign of Meta’s strength is the increasing confidence of institutional investors. Major funds are aggressively buying Meta shares. RNC Capital, for example, raised its holdings by more than 381%, a bold vote of confidence. 

MBB Public Markets also increased its stake, holding around $16.4 million worth of shares. In fact, institutions collectively own close to 80% of Meta’s stock, which means professional investors see significant long-term potential.

Institutional backing is often considered a strong signal in the market, as these firms conduct deep research before making decisions. Their continued accumulation suggests that Meta is viewed not only as a growth company but also as a stable and reliable part of global investment portfolios.

Stock Performance and Momentum

Meta has delivered exceptional returns in 2025. The stock is up nearly 29%, easily outpacing many peers in the technology sector. Over the last five years, the stock has gained about 168%, compared with the S&P 500’s return of 104%. This track record demonstrates Meta’s ability to sustain growth even through periods of market volatility.

Recent sessions highlight this momentum. With a price-to-earnings ratio of 25.95 and earnings per share standing at $27.56, Meta is not excessively priced when compared with other leading technology stocks. 

In fact, its valuation is about 33% lower than NVIDIA's, despite both companies being major players in AI. This makes Meta look attractively priced for investors who want exposure to artificial intelligence but prefer a stock with more diversified revenue sources.

Strength of Core Businesses

While artificial intelligence keeps Meta under a spotlight, its advertising and social media businesses remain its financial backbone. Instagram alone generates an estimated $32 billion in advertising revenue each year. Combined with Facebook, WhatsApp, and the newer Threads platform, the company maintains one of the largest global user bases, which translates into powerful advertising potential.

This steady flow of advertising revenue gives Meta the ability to fund its ambitious technology projects while still producing strong profits. The balance of a reliable core business and high-growth investments creates a unique advantage. Few companies in the world can match this combination of scale, cash flow, and innovation.

Meta Stock Price Prediction: Analyst Optimism and Price Targets

Wall Street continues to remain bullish on Meta. Most analysts rate the stock as a strong buy, with price targets ranging between $816 and more than $863. This suggests an upside potential of around 6% to 12% in the next year. Considering the strong rally already achieved in 2025, this outlook is impressive.

The confidence of analysts is not just based on speculation. It is backed by Meta’s proven performance, its aggressive AI strategy, and its ability to consistently deliver returns. For long-term investors, Meta continues to represent both growth and stability, a rare mix in the technology sector.

Also Read: META vs. MSFT: Which Stock Gives the Highest Returns?

Regulatory Challenges and Risks

Despite its strong performance, Meta is not free from risks. The company is currently facing an antitrust trial launched by the Federal Trade Commission, focusing on its acquisitions of Instagram and WhatsApp. This trial, which began in April 2025, is still ongoing. While the outcome remains uncertain, no major negative rulings have yet been made.

In addition to regulatory issues, Meta is also under scrutiny for how it manages safety on its platforms. Whistleblowers have testified in the US Senate that Meta put virtual-reality profits ahead of child safety. 

A lawsuit has also been filed by a former WhatsApp cybersecurity executive who accused the company of neglecting data protection measures. These concerns have the potential to impact Meta’s reputation and may lead to regulatory penalties.

However, these risks have not derailed the company’s growth so far. The strong financial base, loyal user ecosystem, and forward-looking investments continue to outweigh the uncertainties. Investors should remain aware of the challenges but also recognize that Meta has historically been resilient when dealing with regulatory and public relations issues.

Balancing Growth and Value

Meta today is not just about growth but also about value. Despite being one of the most innovative companies in the world, its valuation is lower than some peers that are also betting heavily on artificial intelligence. 

This balance makes Meta appealing to a wide range of investors. Growth investors see the potential in AI, while value investors appreciate the relatively modest valuation compared with other top tech firms.

The combination of $27.56 in earnings per share, a price-to-earnings ratio under 26, and nearly $1.86 trillion in market capitalization reflects both strength and opportunity. The company’s consistent performance proves that it can innovate without losing financial discipline.

Final Thoughts

Meta Platforms Inc. has grown far beyond its origins as a social media company. With large investments in artificial intelligence, a diverse set of revenue streams, strong institutional backing, and continued analyst optimism, the firm has secured a place as one of the strongest stocks in the global market. The company’s stock momentum, trading close to all-time highs yet still offering upside potential, further adds to its appeal.

Regulatory scrutiny and governance concerns remain part of the picture, but these risks are being balanced by Meta’s ability to grow revenue, build infrastructure, and maintain user engagement on a massive scale. Compared with other leading technology companies, Meta offers both growth potential and relative value, making it a standout choice in today’s market environment.

Meta’s journey is a story of resilience, scale, and ambition. From leading social media to becoming a global leader in artificial intelligence, the company has transformed itself into a technology powerhouse. With its current trajectory, Meta is positioned not only to remain one of the most valuable companies in the world but also to define the next era of digital innovation.

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