In 2024, shares of Meta Platforms (META, Financial) have an impressive return of 70%, outpacing the S&P 500 gain of only 24% as the social media giant restored investor confidence and profitability. This amazing success was due to the predicated on strategic restructuring, the streamlining of its operations, and a tight focus on artificial intelligence (AI) integration. Moreover, to appeal to investors further, the social media company also increased shareholder returns by raising dividends.

• Warning! GuruFocus has detected 5 Warning Sign with META.

With the release of its financials on Wednesday, Meta easily beat Wall Street’s expectations: revenue grew by 19 percent to $40.6 billion, and EPS rose 37 percent to $6.03 for Q3 2024. While 5% growth in Family DAP was slightly below analyst forecasts, family DAP was a critical metric for us, and it grew year over year. While that is the case, the metric showed the company’s global user base continued to grow, cementing its market lead.

For 2025, the company also raised its capital expenditure (capex) guidance from $38 billion to $40 billion, as it coordinates with ramping up infrastructure costs on investments in AI technologies. The shift seems to be part of a broader meta-strategy to exploit new opportunities with AI and grow its footprint in the market.

Even though analysts are still bullish on Meta’s future performance, things aren’t looking so good in Nvidia as Crayon set its price well above the average. One analyst named Andrew Boone of JMP Securities raised its price target for META to $750 from $660, noting that the AI integration into the company’s advertising tools and progress towards its XR ambitions also make 2025 a big growth year.

This article first appeared on GuruFocus.