Menlo Park, California-based Meta Platforms, Inc. (META) is one of the world's largest social media platforms, with a market cap of $1.4 trillion. The company develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality and mixed reality headsets, augmented reality, and wearables. 

Shares of this social media giant have outpaced the broader market over the past 52 weeks. META has rallied 30.3% over this time frame, while the broader S&P 500 Index ($SPX) has gained 11.7%. Moreover, on a YTD basis, the stock is down 2.3% compared to SPX’s 4.7% decline. 

Zooming in further, META has also outperformed the Vanguard Communication Services Index Fund ETF’s (VOX) 16.1% gain over the past 52 weeks and 4.3% loss on a YTD basis. 

On Apr. 30, META reported strong Q1 results, prompting its share price to rise 4.2% in the following trading session. The company’s revenue improved 16.1% year-over-year to $42.3 billion and topped the consensus estimates by 2.6%. This top-line growth was primarily driven by robust performance in its key advertising and Family of Apps segments. In addition, its operating income rose 27% from the prior-year quarter, supported by higher revenue and a reduction in general and administrative expenses. As a result, its net income per share surged 36.5% year-over-year to $6.43, significantly exceeding Wall Street's forecast by 23.2%.

Looking ahead to fiscal 2025, META lowered its total expenses guidance and now expects it to be between $113 billion and $118 billion. Moreover, it increased its capital expenditure outlook in the range of $64 billion to $72 billion. This increase reflects continued investments in data centers and infrastructure, aimed at supporting its expanding artificial intelligence initiatives.

For the current fiscal year, ending in December, analysts expect META’s EPS to grow marginally year over year to $24.08. The company’s earnings surprise history is promising. It exceeded the consensus estimates in each of the last four quarters. 

Among the 53 analysts covering the stock, the consensus rating is a “Strong Buy” which is based on 45 “Strong Buy,” two “Moderate Buy,” four “Hold,” and two “Strong Sell” ratings. 

This configuration is slightly less bullish than a month ago, with 46 analysts suggesting a “Strong Buy” rating. 

On May 1, KeyCorp (KEY) maintained an “Overweight” rating on META and raised its price target to $655, which indicates a 14.5% potential upside from the current levels. 

The mean price target of $681.06 represents a 19% upside from META’s current price levels, while the Street-high price target of $935 suggests an ambitious upside potential of 63.4%.