1 Reason to Buy Meta Stock Now and Hold for the Long Term
Meta Platforms is starting to make real money outside of advertising.
Meta Platforms, the owner of Facebook, Instagram, and WhatsApp, reported a 26% year-over-year revenue growth in its third quarter, despite a 10% dip in stock price from its September high. Revenue from non-advertising sources grew 59% to $1.1 billion, driven by paid messaging on WhatsApp and Meta One subscriptions. The company has over 15 million Meta One subscribers, a figure that is growing at more than twice the rate of overall revenue.
Meta estimates that more than 500 million small businesses utilize its apps for customer outreach, presenting a significant market for paid messaging and AI business tools. CFO Susan Li also indicated that Meta is launching new AI businesses set to contribute to revenue growth in 2027, with potential for substantial scaling in the long term.
The stock trades at approximately 19 times its projected 2027 earnings, similar to the average forward multiple of the S&P 500. This appears to be a fair price for a business boasting over 3.6 billion daily users and the potential to expand through AI services.
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