Only a tiny percentage of publicly traded stocks have ever achieved a $1 trillion valuation. The group of corporations that have hit $4 trillion is even more exclusive. It includes Nvidia and Alphabet as its current active members, with Microsoft and Apple also having reached this milestone at some point.
One tech leader that could join that clique within six years is none other than Meta Platforms (META 1.50%). Here is why.
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Meta's strong momentum
Meta Platforms' shares dropped after its third-quarter 2025 earnings report, as investors feared that its heavy investments in artificial intelligence (AI) would not pay off and that the company's profits and margins would be squeezed. But in its latest period, the social media specialist showed that its spending is paying off. Meta Platforms' revenue jumped by 24% year over year to $59.9 billion, coming in ahead of analyst expectations, while its earnings per share rose 11% to $8.88.
Further, Meta Platforms' guidance was strong. The company expects first-quarter revenue between $53.5 billion and $56.5 billion. At the midpoint, that would amount to a 30% increase compared to the first quarter of 2025. Meta Platforms isn't slowing down its AI spending, but as long as it is backing that up with strong revenue growth, it won't be a problem.
NASDAQ: META
Key Data Points
Looking at the next six years
Meta Platforms is currently worth about $1.8 trillion. It needs a compound annual growth rate of 14.2% to hit $4 trillion in five years. That's no easy task, but Meta Platforms has several things going its way.
First, it continues to grow its ecosystem. The company now boasts 3.58 billion daily active users (DAUs), up 7% year over year. Meta Platforms is ramping up monetization opportunities, largely thanks to AI. It aims to improve its recommendation algorithms, which have been driving greater engagement across its websites and apps, in turn leading to higher ad revenue.
The company also sees an opportunity to add AI-powered shopping tools. This initiative could also help boost engagement for Meta Platforms.
Of course, there could be some headwinds. Although the market is OK with the company's spending for now, an economic slowdown that leads to a decrease in the ad budget could affect the stock price. Even beyond that, Meta Platforms' share price could dip again if sales growth disappoints at some point.
These caveats aside, Meta Platforms is firing on all cylinders and could deliver market-beating returns over the next six years, joining the rare group of $4 trillion companies.
