"The stock market is often considered the world's greatest wealth creator, but some recent data compiled by The Motley Fool reveals that many Americans are still missing out on those life-changing gains. According to a recent Gallup poll, only 62% of American adults owned stocks. The Federal Reserve also found that baby boomers held 54% of all shares in the U.S., while Gen Xers and Millennials only held 21.9% and 8.5%, respectively."
"Meta Platforms, the parent company of Facebook, Instagram, Messenger, and WhatsApp, is the world's top social media company with 3.48 billion monthly active users across all its apps. It generates most of its revenue by crafting targeted ads for those users, and it shares a near-duopoly in digital ads with Alphabet's Google. Meta has been upgrading its own AI algorithms to craft better targeted ads from its own first-party data to reduce its dependence on third-party data."
"It's been expanding Reels to keep up with TikTok in the short video space, and it's been subsidizing the expansion of its unprofitable Reality Labs segment (which develops its loss-leading virtual reality (VR) and augmented reality (AR) products) with its higher-margin advertising revenue. From 2024 to 2027, analysts expect Meta's revenue and earnings per share ( EPS) to grow at a CAGR of 16% and 13%, respectively."
Many American adults do not own stocks, with only 62% holding equities and older generations holding a disproportionate share of market wealth. Baby boomers own 54% of U.S. shares while Gen Xers and Millennials hold 21.9% and 8.5% respectively. Gen X investors with a decade before retirement are encouraged to consider high-growth technology companies with durable competitive advantages. Meta Platforms leads social media with 3.48 billion monthly users, derives most revenue from targeted advertising, upgrades AI and Reels, and subsidizes Reality Labs with ad margins. Analysts forecast Meta revenue and EPS growth through 2027.
Read at The Motley Fool
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