TLDR
- Capital Wealth Planning founder Kevin Simpson calls META his “number one pick” for 2025 and bought additional shares during recent pullback
- Morgan Stanley maintains Buy rating with $850 price target, citing planned $600 billion US investment through 2028
- Meta reported 3.43 billion monthly active users in Q2 2025, representing 6% year-over-year growth
- Company’s advertising revenue grew 21% YoY, representing 98% of total revenue
- First Eagle Global Fund highlights strong revenue growth driven by increases in ad impressions and price per ad
Kevin Simpson isn’t backing down from his bullish Meta stance. The Capital Wealth Planning founder and CIO doubled down on his position during a recent market pullback.
Speaking on CNBC in late August, Simpson revealed he added another 1% to his META holdings. “We still look at Meta. It was our number one pick going into the year. I think it continues to be,” Simpson said.
The timing proved fortuitous as the stock has recovered from its recent lows. Simpson capitalized on weakness that followed broader tech sector volatility.
Meta’s user base continues its relentless march upward. The platform now serves 3.43 billion monthly active users as of March 2025, up 6% from the previous year.
That represents roughly half the world’s population using Meta’s services. The sheer scale gives the company unmatched leverage for monetization and data processing capabilities.
Revenue Engine Firing on All Cylinders
The advertising machine that powers Meta keeps delivering. Revenue from ads grew 21% year-over-year, accounting for 98% of the company’s total revenue.
First Eagle Global Fund noted the dual drivers behind this growth. Both ad impressions and price per ad increased during the quarter, creating a powerful revenue multiplier effect.
The fund highlighted Meta’s ability to balance profitability with aggressive AI investments. This dual focus spans core advertising, metaverse development, and broader AI applications.
Wall Street remains convinced of Meta’s trajectory. Morgan Stanley analyst Brian Nowak maintained his Buy rating on September 9, keeping his $850 price target intact.
Investment Plans Drive Long-Term Confidence
Nowak’s confidence stems partly from Meta’s planned $600 billion US investment through 2028. This massive capital commitment has already been factored into the bank’s financial models.
The analyst doesn’t expect this spending to hurt earnings per share or free cash flow. The investments align with Meta’s existing operational and capital expenditure plans.
Much of this investment will flow to US-based offices and research and development efforts. This geographic concentration plays to Meta’s existing strengths and infrastructure.
GPU-enabled machine learning advances represent another key growth catalyst. These improvements should drive better user engagement and higher revenue per user over time.
Nowak sees model expansion and enhanced recommendation tools as long-term growth drivers. Video and content discoverability improvements should further boost platform engagement.
The company continues hiring aggressively in AI while developing core advertising businesses. This parallel development strategy aims to capture both immediate revenue and future growth opportunities.
Meta’s financial performance demonstrates the company’s execution ability. Strong revenue and earnings growth occurred while maintaining heavy investment in future technologies.
