Meta Platforms (META) is inching closer to the $2 trillion mark, fueled by growing investor enthusiasm around its artificial intelligence (AI) initiatives. The company is steadily transforming from a social media powerhouse into a tech innovator with tangible hardware offerings.

Its Ray-Ban Meta smart glasses, developed with EssilorLuxottica (ESLOY), have already sold more than 2 million units. However, these glasses provide limited AI interaction, photos, video, and audio features. But Meta is now poised to take a significant next step. 

The company plans to launch a more advanced device, codenamed Hypernova, equipped with either a built-in display or holographic projection. Expected to be priced at around $800, these glasses aim to deliver augmented reality (AR) capabilities at a surprisingly accessible price point.

Investor excitement is evident in META stock’s performance. The stock, which has delivered a year-to-date (YTD) gain of 28%, is now up 7% in the last month alone. Analysts believe that if Hypernova resonates with consumers, it could drive significant additional revenue while reinforcing Meta’s position as a trailblazer in the AI and AR space. 

About Meta Platforms Stock

Headquartered in Menlo Park, California, Meta Platforms carries a market capitalization of nearly $1.9 trillion, positioning it as the world’s largest social media company. Its ecosystem has grown far beyond Facebook to include Instagram, WhatsApp, Messenger, and Threads, creating an integrated suite of platforms connecting billions of users globally.

Over the past year, META stock has surged 41%, a remarkable performance that significantly outpaces the Nasdaq 100 Index ($IUXX), which has climbed 21% during the same period. 

META stock’s valuation, trading at 26.72 times forward adjusted earnings and 11.42 times sales, positions it above industry norms, signaling that the market is pricing in both robust current performance and future innovation potential.

Moreover, Meta continues to reward shareholders with an annual dividend of $2.10 per share, translating to a modest 0.28% yield. The most recent quarterly cash dividend of $0.525 per share was paid on June 26 to shareholders of record as of June 16.

Meta Surpasses Q2 Earnings

On July 30, Meta released its Q2 2025 earnings report, exceeding Wall Street expectations and sending META stock up around 11.3% the following day. Revenue increased 22% year-over-year (YOY) to $47.52 billion, surpassing analyst estimates of $44.84 billion, fueled by both advertising performance and a steadily growing user base. 

Across Facebook, Messenger, WhatsApp, Instagram, and Threads, daily active users totaled 3.48 billion, a 6% increase from the prior year, demonstrating sustained engagement.

Family of Apps revenue accounted for $47.1 billion in the quarter, up 22% YOY. Q2 Family of Apps ad revenue reached $46.6 billion, growing 21%, or 22% on a constant currency basis, with online commerce emerging as the largest contributor to YOY growth. 

Family of Apps other revenue totaled $583 million, up 50%, supported by WhatsApp paid messaging and Meta Verified subscriptions. Operating income climbed 38% to $20.4 billion, representing a 43% operating margin, while net income rose 36% to $18.3 billion. EPS increased 38% to $7.14, well above analysts’ $5.83 expectation.

Looking forward, Meta expects Q3 2025 revenue between $47.5 billion and $50.5 billion. Fiscal 2025 expenses are projected between $114 billion and $118 billion, reflecting 20% to 24% growth YOY as Meta invests in infrastructure and high-caliber talent to advance AI initiatives. 

Looking ahead to Q3 fiscal 2025, analysts forecast an 11% increase in EPS to $6.69. For the full fiscal year, the bottom line is expected to grow by 17.3%, settling at $27.98. Beyond 2025, projections for 2026 point to modest 5.6% EPS growth, lifting earnings to $29.54 per share.

What Do Analysts Expect for Meta Stock?

Analyst sentiment for Meta Platforms remains overwhelmingly positive. Stifel raised its price target to $900 from $845 while maintaining a “Buy” rating, citing the company’s AI initiatives and a user base exceeding 1 billion monthly active users. 

Susquehanna followed suit, raising its price target from $700 to $900 while maintaining a “Positive” rating, attributing the adjustment to strong quarterly results and confident guidance. BofA Securities also increased its target from $775 to $900 with a “Buy” rating, reflecting optimism around Meta’s AI-driven revenue potential.

Analysts assign META stock an overall rating of “Strong Buy.” Currently, 55 analysts cover META, with 45 rating it a “Strong Buy,” three recommending “Moderate Buy,” six suggesting “Hold,” and one analyst advising a “Strong Sell.”

META stock’s average price target of $866.92 represent potential upside of 15%. Meanwhile, the Street-high target of $1086 indicates a 44% potential gain from current price levels.