Many stocks, it's safe to say, are expensive by almost any measure right now. That's just what a long-tail, frothy market does to share prices. Yet there are some that are still worth buying even at these high levels. In my view, Meta Platforms (META -1.14%) is among these gems, and there's one solid, foundational reason for this view.
Top dog
To me, the No. 1 justification for buying and holding Meta stock is that the company is far and away the No. 1 in its field: social media. It's not only the owner of its cornerstone Facebook site, which boasts billions of users because it's so generalized and useful, but also photo-sharing powerhouse Instagram and popular secure messaging app WhatsApp.
Image source: Getty Images.
That well-curated collection of major assets keeps the bucks flowing in, so it's no wonder that Meta dwarfs all other social media stocks in terms of revenue. It collected nearly $165 billion on the top line in 2024.
As if that 12-digit figure wasn't enough, the company's outstanding, high-margin performance just keeps attracting investors. These folks have pumped up its market cap sharply of late, to the point where Meta's value stands at nearly $2 trillion. No other peer in its industry even comes close.
More double-digit growth ahead
The elements that made Meta the beast that it is are still very much in place.
Facebook is as populous and busy as it's ever been, and management is skilled at maintaining the site's hard-to-beat advantage of precisely targeted advertising. That's irresistible to companies wanting to reach high-potential audiences of current and would-be customers. Instagram and WhatsApp are also mass-user sites, and therefore also extremely attractive to advertisers.
Analysts, who have been known to underestimate Meta's ability to grow profitability and revenue, continue to expect significant fundamental improvements from the company. Their consensus estimates are revenue growth of 19% this year and 16% next year, and I fully expect the company to beat those estimates. I'm also fully expecting Meta to keep being the hugely profitable powerhouse it is at present.
