Key Points

• Investors will be pleased if the share price gains 49% in the next two to three years.

• Despite Meta’s AI-fueled spending spree, it remains extremely profitable.

• The social media stock’s valuation looks cheap compared to its impressive growth.

• 10 stocks we like better than Meta Platforms ›

Investors might think that we’re in unprecedented times. The world’s most valuable cryptocurrency is plunging. A safe haven like gold has been extremely volatile. And software stocks have gotten pummeled.

Meta Platforms (NASDAQ: META) hasn’t been immune from this turbulent market environment; the social media stock is 15% off its peak (as of Feb. 5). But are the company’s shares going to $1,000?

Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »

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Meta is on a stunning run

First, it’s important to place a time horizon on the $1,000 price target. This represents a hypothetical 49% gain. That’s much higher than the S&P 500 index’s long-term 10% annualized average.

Will Meta reach this in 2026? It’s possible. In the past three years, the stock has climbed at a compound yearly rate of 53%. It’s been on an incredible run on its way to a $1.7 trillion market cap. Based on this past performance, it wouldn’t be surprising to see the momentum continue.

However, investors are better off tempering expectations. I think a more rational perspective is to see the share price rise 49% to $1,000 by the end of 2028. It helps that the current valuation isn’t demanding. The stock trades at a forward price-to-earnings ratio of 22.3.

Don’t buy the stock with a short-term outlook

It can be easy to get caught up with random price targets. They can drive excitement for investors looking to score quick gains. Avoid fixating on the short term, though.

If you’re going to buy Meta shares, do it with a five- or 10-year perspective. Adopting this mentality forces investors to think about fundamentals. In this case, they are very strong.

Meta’s financials are a good place to start. It continues to post rapid growth. The business saw its base of daily active users expand by 7% year over year to 3.58 billion in Q4 (ended Dec. 31). Ad impressions jumped 18%, and ad pricing rose 6%. Revenue increased by 24% to $59.9 billion.

The obvious concern these days centers on the huge investment cycle taking place to increase artificial intelligence-related computing capacity. Capital expenditures are expected to come in between $115 billion and $135 billion in 2026, a material jump from last year.

Even with all the spending happening, Meta reported a stellar operating margin of 41% in 2025. And it had $81.6 billion of cash, cash equivalents, and marketable securities on the balance sheet compared to $58.7 billion of debt.

And because Meta possesses a wide moat due to its network effect, investors can confidently own this company for the long term. There’s minimal risk that its popular apps become obsolete.

It’s only a matter of time until the stock reaches $1,000.

Should you buy stock in Meta Platforms right now?

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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.