The evolution of LLMs akin to Llama 4 captures a snapshot of innovation, heralding a new era of AI applications catering directly to users.
The Trajectory Leading Meta to the $2 Trillion Club in Three Years
Reflecting on Meta’s trailing-12-month earnings per share standing at $19.59 and its current stock price hovering around $488 reveals a price-to-earnings (P/E) ratio of 24.9. This impels a 23% ascent for alignment with the Nasdaq-100 index, boasting a P/E ratio of 30.6, propelling Meta’s market cap nearly to $1.5 trillion.
Delving deeper, Meta emerges as even more attractively priced concerning its forthcoming earnings. Forecasts anticipate the company generating $23.93 in earnings per share by 2025, situating the stock at a forward P/E ratio of only 20.4. Should this prognosis materialize and Meta’s P/E ratio harmonize with the Nasdaq-100’s by 2026-end, the valuation could surge to $1.8 trillion.
Such projections delineate that Meta merely requires an 11% uptick in earnings per share in 2026 to justify a $2 trillion valuation. Given the company’s prior earnings growth rate of almost 30% from 2014 to 2023, the odds of this realization seem promising.
Moreover, the expanding suite of AI tools, primarily tailored for businesses, at Meta’s disposal suggests a potential for AI to serve as a more robust propellant for the company than currently envisaged by analysts. This arsenal could stimulate marketing expenditures and siphon ad revenues away from competitors, unleashing unforeseen possibilities on the horizon.
Even if the $2 trillion milestone remains slightly further down the road, Meta seems to be carving a clear trajectory towards eventually joining this distinguished club.
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