"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 22.9% in the past six months, and last month they hit an all-time high of $796.25. For comparison, other Magnificent 7 members have fared worse. Look no further than Apple Inc. ( NASDAQ: AAPL) and Tesla Inc. ( NASDAQ: TSLA), which are up 0.8% and 9.6%, respectively, since the beginning of the year."
"Why Invest in Meta Platforms? 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."
"That belief has been bolstered by its recent performance. Since hitting its year-to-date low on April 21, the stock has rallied 62.7%. The near-term future of the economy is uncertain-just like the markets themselves-and Meta Platforms CEO Mark Zuckerberg is a controversial figure. Certainly, Zuckerberg's sudden shift to the metaverse and brand name change to Meta Platforms raised a few eyebrows several years ago."
Meta Platforms has outperformed peers, rising 22.9% over six months and hitting an all-time high of $796.25, while some Magnificent 7 peers lag. Strong first- and second-quarter earnings support continued outperformance and the stock rallied 62.7% from its April 21 low. Economic uncertainty and CEO Mark Zuckerberg's controversial pivot to the metaverse complicate the outlook. Reality Labs remains a major drag, generating $370 million in Q2 2025 revenue while producing a $4.53 billion operating loss. Investors should weigh a wide range of price targets and prepare strategies for multiple outcomes given the mix of strong core results and heavy metaverse losses.
Read at 24/7 Wall St.
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