Stock price trend and valuation

  • Meta’s share price rose significantly through much of 2025, driven largely by strong advertising revenue and continued investor interest in AI-related growth.
  • The stock reached an all-time high of around US$776 in late July 2025.
  • By mid-December 2025, Meta’s share price had pulled back from its peak, showing volatility alongside broader tech sector moves.
  • Meta remained one of the largest technology companies by market capitalisation throughout 2025.

 

Key drivers of performance

  • Advertising strength across Facebook, Instagram, and related platforms supported steady revenue growth.
  • Increased adoption of AI for ad targeting and engagement improvements helped sustain margins and competitive positioning.
  • Significant investment in AI infrastructure reinforced long-term growth expectations.
  • News of cuts to metaverse spending led to positive share movement as investors reacted to lower near-term expense.

 

Periods of volatility

  • Following its July high, the stock gave back some gains as broader tech sentiment softened.
  • After the third-quarter earnings report in late October, shares dropped despite solid revenue growth.
  • Mid-December 2025, shares were down from recent highs reflecting market rotation away from large tech stocks.

 

Analyst outlook and target revisions

  • Analysts maintained generally positive long-term views, with many Buy or Outperform ratings and raised price targets through much of 2025.
  • Some price targets were adjusted lower earlier in the year amid macro uncertainty.

 

Sector and broader context

  • Meta’s performance occurred in a market where large AI-linked technology companies often outperformed the wider index.
  • Advertisers continued to allocate significant budgets to Meta’s platforms, helping sustain core revenue growth even when sentiment on tech valuations softened.