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With billions of daily active users, this dominant internet company benefits from powerful network effects.
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The ability to generate massive profits helps to finance significant investments related to artificial intelligence (AI).
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Investors can buy shares in this elite company with a reasonable evaluation.
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These 10 shares could cut the next wave of millionaires ›
After a stormy start of the year, the stock exchange performed extremely well since the beginning of April. The main indices are traded in record territory, showing the scourge of investors as we look forward.
Despite optimism, which can make you believe that there are no longer attractive buying opportunities, investors can still find places to park your capital. One such company lies in front of the eyes.
Here is a magnificent stock that you need to think about buying that can make you more rich in 2025 and then.
At $ 1.8 trillion Market cap., Meta platforms (Nasdaq: Meta) It doesn’t fly under the radar. But the business has many favorable qualities that can attract the interest of investors who want to invest money to work in the stock market.
On the one hand, this company has a history of strong growth. The revenue increased with a complex annual rate of 18.4% between 2019 and 2024. Meta has increased its inventory to AD over the years, while taking advantage of price power. During the Q1 (ended March 31), the average price of the advertising company jumped by 10% compared to the year. Customers continue to find enormous value in conducting advertising campaigns of meta.
Meta is also incredibly profitable, emphasizing how lucrative a digital advertising platform can be. In the last quarter, the company reported a stellar net margin of profit from 39.2%. This helped to generate $ 10.3 billion free cash flow. As of March 31, Meta has $ 70.2 billion in cash, cash equivalents and market securities, compared to $ 28.8 billion in long -term debt, in balance.
Everyone knows the family of Meta apps, with services such as Facebook, Instagram, WhatsApp and Threads, which carry a huge 3.43 billion daily active users. These social media applications take advantage of powerful network effectsallowing them to improve as they enter more users. In my opinion, there is a minimal threat of interference here, as it would be almost impossible for the rival platforms to reach this type of scale. Moreover, META can collect ridiculous amounts of data that further enhance its competitive position.
Meta deals with artificial intelligence (AI). The founder and CEO Mark Zuckerberg has spent a considerable amount of money to hire the best talents to create Meta Superintelligence LabsS There are also plans to spend “hundreds of billions of dollars” on an infrastructure associated with AI called SuperClusters to support efforts for research and development.