META will be worth more than $500 a share in one year's time
$Meta Platforms, Inc.(META)$
"Annualize META 's Q3 EPS of $4.39 and you're looking at a 16.5X forward EPS multiple at $288/share. In a company growing its top line 21%, with $61B in cash and $37B authorized in share buybacks (5% of the company's market cap), operating margins double last year (20% --> 40%).
You don't often get to buy companies with financials and market dominance like META at such a share price. With the rest of big tech all similarly crushing earnings and real GDP up 4.9% in Q3, I think META has a strong year ahead of them.
Slap a more reasonable multiple like 25x $4.39 EPS a quarter, you're looking at $439 share price on META. Now take into account buybacks.
Apply today's annualized forward multiple to trough earnings of $1.64 EPS in Q3 2022, you get a $1.64 * 4 * 16.5 = $108 per share. You can easily make the case that META at $288 with business bouncing back is as cheap as at low $100s in late 2022 when earnings were uncertain.
Prediction: META will be worth more than $500 a share in one year's time (10/27/2024)."
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