Meta's shares haven't slowed down in 2025, extending last year's gains. The company's focus on efficiency and cost-cutting in 2023 paid off big time, with a significant boost in operating margins and even a first-ever dividend. Despite some setbacks early in the year, the stock rebounded, fueled by investor enthusiasm for Meta's potential in artificial intelligence and generative AI. The company's vast user data puts it in a strong position to compete in this area. Meta is also doubling down on its Reality Labs division, which is working on metaverse projects and VR headsets. While losses in this area are expected, investors are likely to be understanding if the company keeps these investments under control and prioritizes profitability and cash flow.

Politics could be a wild card in 2025. With Donald Trump back in the White House and his past criticisms of Big Tech, it's uncertain how he'll approach regulation. Meanwhile, a challenge to the TikTok divestment law is set to be heard by the Supreme Court, which could give Meta's Reels a boost if TikTok is banned in the U. S.

Investors will be watching for improvements in monetizing WhatsApp and Messenger, as well as growth in the new app Threads. They'll also be keeping an eye on enhancements to Meta's large language model, Llama, which could open up new revenue streams.

Meta Shares Soar Again: Efficiency, AI, and Politics in the Spotlight

Actions