Meta Platforms (META +0.19%) has had a subpar year, as its shares are down 11% in 2026 (as of Aug. 5). What's more, those shares have underperformed the S&P 500 index in the past five years. Investors aren't used to seeing this from such a dominant company.
Where will this Magnificent Seven stock be in five years?
Image source: The Motley Fool.
Things will stay the same
During the first six months of 2026, Meta raked in $114 billion in advertising revenue. This represented 97.7% of its entire sales figure. Investors are correct to assume that in five years, the company's primary money-making activity won't change.
Meta's ad operations are performing at an extremely high level, as artificial intelligence (AI) helps boost engagement among the billions of users across its family of apps. At the same time, AI capabilities are helping ad customers better target and monetize these users.
According to Wall Street analyst estimates, the business will post a 21.6% annualized revenue gain between 2025 and 2028. Even if this pace drastically decelerates further, there's a good chance that Meta's top line will be double in 2030 relative to what it was last year. That will certainly result in a much larger earnings base.
New revenue streams
Not everything will remain constant, of course. Businesses are always evolving. In Meta's case, two key areas could introduce more meaningful revenue streams five years from now.
The first part of Meta's business that could grow larger in the future is its hardware sales. This mainly includes smart glasses and virtual- and mixed-reality headsets. Founder and CEO Mark Zuckerberg thinks that glasses, though, are the "ideal form factor" for personal superintelligence.
Additionally, Meta is planning to sell its excess compute capacity, a direct result of its massive capital expenditures, to third-party customers. Zuckerberg said on the second-quarter 2026 earnings call that there is demand to buy this valuable resource at a premium.
NASDAQ: META
Key Data Points
It's difficult to be bearish
In August 2031, there's almost no doubt that Meta will be operating at a high level. Unless an entirely new social media platform can quickly amass a gargantuan user base, develop robust network effects, and generate substantial ad revenue, shareholders shouldn't worry about the fundamentals.
The question centers on how the shares will perform. Investors definitely want this social media stock to beat the market in the coming five years.
Shares currently trade at a forward price-to-earnings ratio of 18.6, which is an attractive valuation. With a strong likelihood that profits will be much higher in the future, Meta is set to be a winning investment opportunity.
