Meta Platforms Stock Analysis

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Meta Platforms Stock Analysis

Why Meta Platforms (Meta) Continues To Outperform

Meta Platforms has been bullish after the announcement of the earnings. A quick look at the charts shows that it is trading near the ATHs, as the results from the last few years were nothing but impressive.

Also, Meta Platforms continues to post strong growth in different sectors with no end in sight. But, is it really wise to buy the stock of this social media giant now that it's trading at such elevated levels? To answer that, we must first understand what's behind the strength of Meta Platforms.

Meta Platforms' Results Beat Expectations

The first and biggest reason is the rising revenue that's coming from both the USA and other markets. All of the data which showed EPS, sales, & net revenue were above the forecasts.

For starters, the EPS of Meta Platforms was $7.14 while the forecast was only $5.92. Now, that's a big surprise which also pushed Meta Platforms towards new highs.

Another good thing is that the expenses of Meta Platforms have also gone down. Meanwhile, the revenue continues to move higher, which has left a positive impact on Meta's bottom line.

Also, Meta has been using AI to improve its operations and has even laid off a portion of its staff. In addition, the AI is also integrated into social media platforms and other products/services offered by Meta.

If we go back to 2022, everyone was concerned as a big decline in the daily users of Facebook was witnessed. However, that's now a thing of the past as daily users are now growing steadily.

As of now, around 3.5 billion people use Meta Platforms' apps every day, which is a very big number. This also means Meta Platforms is now the go-to choice for ad spend and marketing.

It's definitely not easy to keep increasing the users, but Meta Platforms has managed that over the years.

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