Meta Platforms Stock To $838?

Our multi-factor assessment suggests that it may be time to buy more shares of META stock. We have, overall, a positive view of the stock, and a price of $838 may not be out of reach. We believe there is not much to fear in META stock given its overall Very Strong operating performance and financial condition. Hence, despite its Very High valuation, the stock appears Attractive but Volatile.

Below is our assessment:

While a single stock can excite, it rarely sustains. Financial advisors who win long term use disciplined allocation – blending equities, gold, and alternatives through trusted partners like ours.

Let’s get into details of each of the assessed factors but before that, for quick background: With $1.6 Tril in market cap, Meta Platforms provides products and technologies that enable people to connect and share through devices, including mobile, VR, wearables, and in-home solutions, enhancing augmented and virtual reality experiences.

[1] Valuation Looks Very High

This table highlights how META is valued vs broader market. For more details see: META Valuation Ratios

[2] Growth Is Very Strong

• Meta Platforms has seen its top line grow at an average rate of 17.3% over the last 3 years
• Its revenues have grown 21% from $156 Bil to $189 Bil in the last 12 months
• Also, its quarterly revenues grew 26.2% to $51 Bil in the most recent quarter from $41 Bil a year ago.

This table highlights how META is growing vs broader market. For more details see: META Revenue Comparison

[3] Profitability Appears Very Strong

• META last 12 month operating income was $82 Bil representing operating margin of 43.2%
• With cash flow margin of 56.8%, it generated nearly $108 Bil in operating cash flow over this period
• For the same period, META generated nearly $59 Bil in net income, suggesting net margin of about 30.9%

This table highlights how META profitability vs broader market. For more details see: META Operating Income Comparison

[4] Financial Stability Looks Very Strong

• META Debt was $51 Bil at the end of the most recent quarter, while its current Market Cap is $1.6 Tril. This implies Debt-to-Equity Ratio of 2.8%
• META Cash (including cash equivalents) makes up $44 Bil of $304 Bil in total Assets. This yields a Cash-to-Assets Ratio of 14.6%

[5] Downturn Resilience Is Moderate

META saw an impact slightly better than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• META stock fell 76.7% from a high of $382.18 on 7 September 2021 to $88.91 on 3 November 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 19 January 2024
• Since then, the stock increased to a high of $790.00 on 12 August 2025 , and currently trades at $644.23

 
2020 Covid Pandemic

• META stock fell 34.6% from a high of $223.23 on 29 January 2020 to $146.01 on 16 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 20 May 2020

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read META Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.