Meta could hit $4T market cap by 2032
What's the story
US-based financial advisory firm, Motley Fool, has predicted that Meta Platforms could join the $4 trillion club by 2032. The prediction is based on the company's strong momentum factor and its six-year outlook. Currently, only tech giants like NVIDIA, Apple, and Alphabet have crossed the $4 trillion mark in market capitalization.
Revenue growth
Revenue beats analyst expectations
Despite a dip in its stock price after Q3 2025 earnings, Meta's revenue has grown by 24% YoY to $59.9 billion, beating analyst expectations. The company's future guidance is also optimistic with first-quarter revenue expected between $53.5-56.5 billion, indicating a nearly 30% increase from the same period last year. However, hitting the $4 trillion mcap would require a compounded annual growth rate (CAGR) of 14.2% over five years.
Business strategy
AI integration and economic slowdown risks
The Motley Fool report highlights that Meta is leveraging artificial intelligence (AI) to expand monetization opportunities and boost engagement across its platforms. This strategy is aimed at driving higher ad revenues. However, the company also faces some challenges. An economic slowdown resulting in reduced ad budgets could potentially impact Meta's stock price negatively.
Stock analysis
Meta's stock performance
Meta's shares closed 1.31% lower at $661.46 after Friday's US share market session, before rising 0.38% in the after-market hours on NASDAQ. The company's shares have given investors over 144% returns in the last five years but have lost 7.8% in the past one-year period.