"So far this year, one of the better performers among the Magnificent 7 has been Meta Platforms Inc. ( NASDAQ: META). Its shares have outperformed the broader market and are currently up 28.4% this year and last month hit an all-time high of $796.25. For comparison, other Magnificent 7 members have fared much worse. Look no further than Apple Inc. ( NASDAQ: AAPL) and Tesla Inc. ( NASDAQ: TSLA), which are down 10.1% and 16.7%, respectively, since the start of the year."
"Furthermore, strong first-quarter and second-quarter earnings reports lend credence to the claim that Meta will continue to outshine its competitors over the next year. That belief has been bolstered by its recent performance. Since hitting its year-to-date low on April 21, the stock has rallied 56.7%. The near-term future of the economy is uncertain-just like the markets themselves-and Meta Platforms CEO Mark Zuckerberg is a controversial figure."
"Let's start by addressing the elephant in the room. Investors should not rely on Meta Platforms' Reality Labs metaverse business to drive the company's near-term future growth. In Q2 2025, Reality Labs generated $370 million in revenue, down from $412 million in the prior quarter. During that same time frame, Reality Labs recorded a loss from operations of $4.53 billion. Unless there is a miraculous turnaround for Reality Labs, Meta Platforms investors should hope that Zuckerberg does not decide to double down on the metaverse this year."
Meta Platforms has been a top performer among the Magnificent 7, with shares up 28.4% year-to-date and reaching an all-time high of $796.25. Other large-cap peers like Apple and Tesla trailed, down 10.1% and 16.7% respectively. Strong first- and second-quarter earnings and a 56.7% rally since the April 21 year-to-date low support continued outperformance expectations. Economic and market uncertainty and CEO Mark Zuckerberg's controversial pivots add complexity. Reality Labs remains a significant drag, with Q2 2025 revenue of $370 million and an operating loss of $4.53 billion, so near-term growth must come from core businesses.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]