Is Meta Platforms Stock Heading for $1,000? | The Motley Fool

Meta's new artificial intelligence agent, Muse, could unlock significant growth opportunities for the company.

Social media giant Meta Platforms (META +2.45%) has rallied 15% this year as it looks to be on track to hit a new all-time high. The business has done well despite adversity and legal challenges relating to the addictiveness of its platforms.

The company generates billions in revenue from advertisers, and the hope is that its new artificial intelligence (AI) assistant, Muse, could drive even more revenue growth. Despite a market cap of around $2 trillion, the stock doesn't look overpriced and may still have more upside. Could it hit $1,000 in the near future?

Meta's stock doesn't look expensive, based on its expected growth

Although Meta's stock is approaching $800, in terms of earnings, its valuation is not enormous. It's trading at 28 times its trailing earnings. But based on analyst projections of how profitable the business will be in the year ahead, it's at a forward price-to-earnings (P/E) multiple of 22.

A key metric growth investors look at is the PEG multiple, which takes into consideration the earnings multiple and the future earnings growth that analysts expect over the next five years. A PEG of less than 1.0 suggests the stock is a good buy when considering future growth. Meta is just under that cutoff right now.

However, analyst expectations can change over time. If Muse proves to be a big moneymaker for the business, the company's outlook may be more promising, leading to greater returns for shareholders.

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Is Meta's stock worth buying today?

Despite the optimism around the business, the consensus analyst price target for Meta's stock is around $796, suggesting it's unlikely to rise much higher. However, the most bullish forecast does project it will reach $1,000. Price targets are typically the levels analysts expect a stock to reach over the next 12 to 18 months.

Averytin News Financial update.