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We recently compiled a list of the 20 High Growth Mega Cap Stocks You Can Buy And Hold For Next 5 Years. In this article, we are going to take a look at where Meta Platforms, Inc. (NASDAQ:META) stands against the other high growth mega cap stocks.
Exactly 5 years ago, the world struggled to deal with a black swan event: the COVID-19 pandemic. There was so much uncertainty that people didn’t even know if they’d be alive in the next few weeks, let alone figure out where the market was heading. Anyone who invested in the S&P 5 years ago would have gained 83%. If you had bought at the exact bottom, you’d have gained twice that amount.
What the above proves is that the present isn’t necessarily an indicator of what the future holds. All companies that had their workflows disrupted have recovered, some more than others. Some companies have strengthened their supply chains. Others have improved their work-from-home capabilities. Industries like airlines and restaurants have modified their business models to cater to the new dynamics.
These companies have been able to deal with the changing dynamics because of their financial strength and innovation. A company’s past performance and its finances give a good idea of whether it will be able to survive bad times. That’s why when we look at the best mega-cap stocks to hold for the next 5 years, we look at how well they have grown in the last 5 years.
To come up with our list of top 20 mega-cap stocks to hold for the next 5 years, we considered stocks with a market cap of at least $200 billion and a 5-year sales growth rate of at least 10%.
A team of developers working in unison to create the company's messaging application.
Meta Platforms, Inc. (NASDAQ:META)
Meta Platforms, Inc. (NASDAQ:META) develops products that help people interact and share with family and friends through PCs, wearables, mobile devices, and other platforms. It operates in the Reality Labs (RL) and Family of Apps (FoA) segments. The company has grown its revenue by 19.06% over the last 5 years.
Some of Meta Platforms, Inc. (NASDAQ:META)’s growth in the recent past has come on the back of success in implementing AI in its advertising business. However, Mark Zuckerberg’s AI plans are grander than just AI in advertising. He plans to have the best open-source AI models in the world and is investing heavily in making that dream a reality.
The company’s Llama model received 650 million download requests in 2024, with Meta AI crossing the 600 million daily active users mark by the end of the same year. Meta is making good use of this popularity by launching LlamaCon, a developer conference where Meta can launch its latest AI tools.