Can Buying Meta Platforms Stock Today Set You Up for Life?

Key Points

• Meta Platforms' advertising business is still booming and is only getting better thanks to AI.

• The company boasts a deep ecosystem and the ability to conjure up monetization opportunities.

• Despite several potential headwinds, the stock still looks attractive to long-term investors.

• 10 stocks we like better than Meta Platforms ›

Meta Platforms (NASDAQ: META), one of the leading social media companies, went public in 2012. Since then, the stock has performed exceptionally well. Its returns over this period are well above those of broader equities. However, some might argue that it's too late to get in on the bandwagon.

Meta Platforms is now worth almost $2 trillion. Can the stock still generate life-changing returns? Let's find out.

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The bullish case for Meta Platforms

Meta's bread and butter is advertising. The company boasts a portfolio of social media brands that includes Facebook, Instagram, Messenger, and WhatsApp. It has more than 3 billion daily active users across these platforms as of the end of the second quarter of 2025. The sheer volume of Meta's ecosystem makes it an attractive place to run ads, but the company goes even further.

It has access to a considerable amount of data from its users, including basic demographic information, interests, favorite celebrities, and much more. This enables the company to assist businesses in crafting ads that are carefully targeted toward specific audiences, making them highly cost-effective.

Meta Platforms' strategy has been successful, as evidenced by its financial results. Second-quarter revenue increased 22% year over year to $47.5 billion, while earnings per share came in at $7.14, 38% higher than the year-ago period.

Image source: Getty Images.

The company's core advertising business will remain central to its results for the foreseeable future. And here is the good news: Meta is improving its ad business thanks to artificial intelligence (AI). On the one hand, it helps improve the ad launch process with AI-powered tools that assist businesses in crafting ads, including by generating relevant messages and images and further enhancing targeting. On the other hand, AI-powered algorithms are boosting engagement on the company's websites and apps.

The result: Time spent on Facebook and Instagram has increased lately. And according to a study the company ran, AI-powered ad tools improved return on ad spend by 22%.Meta is looking to automate the ad process completely, which should lead to even greater gains. The company could perform well as it moves toward that goal. But what happens beyond advertising?

In my view, Meta Platforms' greatest strength is its ecosystem and culture of innovation. With several billion users, the tech giant can develop various monetization schemes, only a few of which need to take off to have a meaningful impact on its financial results. Meta is gradually expanding into other avenues, including paid messaging on WhatsApp. The company is investing in AI glasses, which CEO Mark Zuckerberg believes will become the norm within the next decade.

Thanks to its core business, its vast ecosystem, and various other initiatives, Meta could still deliver market-beating returns over the next 20 years.

Some risks to consider

Meta Platforms may encounter some obstacles. For instance, the company is spending a small fortune on AI infrastructure. That could be a problem if its AI initiatives don't have the impact it hopes they will, especially if we enter an economic recession. Consumers spend less -- and so do businesses, including on advertising -- when the economy is struggling. The combination of slower revenue growth (if ad spending decreases) and increased expenses due to Meta's investments in AI could harm the company's financial results.

Antitrust lawsuits could present another potential threat to Meta Platforms. Regulators in the U.S. have argued that Meta has a monopoly in the social networking space. These lawsuits are still ongoing. In the worst-case scenario, Meta may be forced to divest some of its assets. Do these potential challenges justify avoiding the stock? Not in my view. Meta proved it could navigate economic challenges a couple of years ago.

Amid growing expenses, declining user growth, and slower revenue increases, the company regrouped, cut costs, and emerged from the ordeal stronger than ever. Meta's AI plans are, so far, yielding tangible results, and we haven't seen all that the company can do in this area yet.

Regarding the company's legal problems, while it's worth keeping an eye on those, a potential and uncertain worst-case scenario shouldn't deter investors from this robust, well-run business that is firing on all cylinders. It might be worth revisiting the question if Meta loses its antitrust case, but the stock's prospects remain highly attractive as things stand.

Lastly, Meta is now a dividend stock -- a fairly new development -- and reinvesting the payout will boost what should already be superior returns over the long run. So can Meta Platforms set investors up for life? I think it can.

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Prosper Junior Bakiny has positions in Meta Platforms. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy.