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• Facebook parent company Meta Platforms has, according to some, lagged in the AI stakes so far this year.
• Yet Meta's stock price is up 44% in 2024 so far - more than all other Magnificent 7 companies, save Nvidia.
• Our analysis explains why Meta's share price could reach $1,000 by 2030.

Social media company Meta Platforms (Nasdaq: META) is arguably one of the more divisive stocks of the Magnificent 7 bunch, and it’s had one of the more nuanced years so far as well.
 

Meta and Apple to join forces?

Meta, along with Apple, has had some criticism in 2024 that they are lagging behind some of the other Magnificent 7 stocks in the AI race.

That may be changing even now. Yesterday, the Wall Street Journal wrote that Meta Platforms are reportedly in discussions with Apple Inc to integrate Meta’s generative AI model into Apple Intelligence.

Although neither Meta nor Apple has officially confirmed or denied the report, such a development could bring a significant change to Meta’s fortunes over the next year to two, with Apple being quite vocal about how many different AI partners it’s allying with in the near future.

“Meta stands out among the Mag7 stocks due to its resilience in the face of market skepticism. The market has lost faith in Meta and its founder multiple times, only to regain confidence and push the stock to new highs,” says Invezz analyst Ritesh A.

So, what could a highly fluctuating and difficult-to-predict stock like Meta be worth by the year 2030?
 

Meta to reach $1000?

In fact, Ritesh believes the Meta stock price could reach as high as $900-$1000 by 2030.

“I believe Meta will continue to dominate the social networking and communication space through its existing and upcoming platforms,” he explains. “I also think the company’s decision to increase capital expenditure to enhance its in-house AI capabilities is a strategic move in the right direction.”

In fact, Ritsh’s forecast may even be conservative. Coin Price Forecast anticipates that the Meta Platforms share price will reach $1530 by this time of year in 2030 – a rise of over 210% from its current stock price.
 

The Meta stock price

With the brilliance of Nvidia’s ascending stock price constantly in the headlines, it can be difficult to see just how well some other Magnificent 7 stocks – like Meta – are actually doing.

At a current share price of around $501.60 at the time of this article going to press, the Meta stock price is up by more than 44% this year to date so far (over $155).

This is a gain which outstrips every other Magnificent Seven stock, save for the mighty Nvidia, by more than 10%.
 

What made Meta’s stock price appreciate by 44% this year?

One significant reason why Meta is still a very attractive prospect, out of all the Magnificent 7, is its mighty and ever-increasing cash flow.

In its latest earnings, reported on March 31, Meta Platform declared, among other metrics, an almost doubling of their cash flow to a flush $12.53 billion.

This is significant, as typically a company with plenty of cash flow – and, even more importantly, that cash flow amount is rising significantly – can enable several attractive future paths for a company, from new research and development to acquisitions, debt servicing and more.

Another reason? Meta is likely to pay out $5.26 billion in dividends throughout the course of 2024, according to the same latest earnings.
 

Where is Meta stock headed?

“Considering both technical and fundamental aspects, I feel Meta still has significant growth potential,” says Ritesh of the stock.

 

I believe the stock can continue to appreciate at a compound annual growth rate (CAGR) of between 10-15% over the next 5 to7 years. Hence, my conservative estimate is for Meta to reach a stock price of $900 to $1,000 by 2030.”

Considering the fact that Meta Platforms’ share price has risen by $305, close to 160% (which roughly works out to a CAGR of 21%) in the past five years, it may be reasonable to expect 15% per annum for the next 5 to 7 years as well.  
 

Meta’s recent history

Meta is a company known for many ups and many downs over the past few years, with its fluctuating fortunes and stock price part of the appeal for many traders.

The company’s first significant dip occurred in 2012, shortly after its IPO. More recently, between 2021 and 2022, Meta’s stock plummeted from above $380 to under $100.

Since early 2023, Meta has enjoyed a robust rally, reaching a new all-time high of over $525 in April.

“Despite a dip following the company’s Q1 earnings announcement, the stock has bounced back to its April levels, indicating strong upward momentum across all timeframes,” says Ritesh of the company’s more recent price movements.
 

Never underestimate a founder-led stock

“If there is one important lesson investors can learn from the rise of the Magnificent 7, it has to be that founder-led companies often outperform their peers,” Ritesh concludes.

“Passionate founders like Elon Musk of Tesla, Jensen Huang of NVIDIA, and Mark Zuckerberg of Meta Platforms have played a crucial role in driving their companies to achieve remarkable success and unprecedented market capitalisations.”

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