Where Will Meta Platforms Stock Be in 5 Years?
2026-08-07 10:28
•Neil Patel •The Motley Fool
••••• • Axe Cap view
Meta Platforms: A Growth Story Worth Watching
Meta's mix of AI-driven advertising and new hardware revenue could reshape its growth trajectory.
Meta Platforms has struggled against the S&P 500 lately but remains a giant with a clear growth runway. Advertising, still their cash cow, could grow about 20% a year thanks to AI improving targeting and efficiency. What's interesting for South African investors is the timing: Prosus and Naspers hold big stakes in Meta-related businesses and often reflect Meta's broader sentiment. Meta's foray into smart glasses, VR headsets, and selling excess server power offers fresh income streams that could double revenues by 2030. At a forward price/earnings ratio of about 18.6, Meta is cheaper than many high-growth tech stocks, suggesting some value. The caveat? The hardware bets might flop or margins could get squeezed, which is not uncommon for tech giants innovating aggressively. Keep an eye on the rand too; a weaker USD/ZAR could dent the local currency returns for investors holding global tech exposures indirectly through Prosus. this is just our opinion and not financial advice
Add some exposure to Prosus, which offers a proxy to Meta's growth but hedge USD/ZAR risk to cushion currency shocks. Avoid jumping in on Meta directly without hedging the rand exposure.
- Prosus
- USD/ZAR
- Meta's hardware ventures underperform
- Rand volatility erodes offshore returns
7/10
Meta Platforms has underperformed the S&P 500 over the past five years despite being a dominant company. However, the article argues Meta is positioned for strong growth, with advertising revenue expected to grow 21.6% annually through 2028, potentially doubling by 2030. New revenue streams from hardware sales (smart glasses, VR/AR headsets) and selling excess compute capacity could further boost earnings. Trading at an attractive forward P/E ratio of 18.6, Meta is presented as a potential winning investment opportunity.
Our take is based on reporting first published by The Motley Fool.