Communication Stocks Aim for a Strong Finish in 2025: An Analysis of 3 Charts.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 25 2025
0mins
Should l Buy META?
Source: Barron's
Strong Performance: The communication services sector has shown consistent strength in 2025, ranking among the top three sectors in the S&P 500.
Performance Metrics: This sector has excelled in one-month, six-month, and year-to-date performance metrics, indicating robust growth and stability.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy META?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on META
Wall Street analysts forecast META stock price to rise
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 644.780
Low
655.15
Averages
824.71
High
1117
Current: 644.780
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Meta's AI Patent Sparks Controversy Over Posthumous Activity
- User Engagement Milestone: Meta reported over 3.5 billion daily active users in Q4 across its platforms, including Facebook, Instagram, and WhatsApp, highlighting its significant influence and user retention in the social media landscape.
- AI Patent Controversy: The company secured a patent allowing the simulation of social media activity for deceased users, which has sparked considerable backlash from consumers, potentially harming its brand reputation despite no immediate plans for implementation.
- User Experience Risks: The patent suggests that users could continue to post content posthumously, which may negatively impact other users, particularly on an emotional level, leading to a decline in trust towards the platform.
- Future Strategic Considerations: While Meta has no current plans to implement this technology, the existence of the patent indicates that the company may consider leveraging it for commercialization in the future, particularly in the realms of digital legacy and virtual memorialization.
See More
Meta Platforms Valuation Lowest Among Magnificent Seven, AI Investments Under Scrutiny
- Valuation Comparison: Meta Platforms has a forward P/E ratio of 21.1, which is lower than the S&P 500's 21.9, indicating its relative affordability among the Magnificent Seven, thus attracting investor interest for potential buying opportunities.
- Advertising Revenue Growth: In Q4 2025, Meta generated $59.9 billion in revenue, a 24% year-over-year increase, with $58.1 billion coming from social media advertising, showcasing the strong profitability of its advertising business despite a $6 billion loss in its Reality Labs division.
- AI Investment Plans: Meta plans to increase capital expenditures to between $115 billion and $135 billion in 2026, primarily directed towards AI projects, although the market remains cautious about the potential returns on these investments, fearing that AI spending may not yield expected profits.
- Market Concerns: The market expresses concerns over Meta's future profitability due to a lack of confidence in its AI spending, as CEO Mark Zuckerberg's substantial investments in the metaverse have not materialized as expected, leading investors to be skeptical about the future returns from AI initiatives.
See More
Meta Platforms Stock Price Decline Amid AI Spending Concerns
- Declining Valuation: Meta Platforms has a forward P/E ratio of 21.1, which is lower than the S&P 500's 21.9, indicating that its stock is trading at a discount compared to the overall market, potentially attracting investor interest while reflecting concerns about future profitability.
- Strong Advertising Revenue: In Q4 2025, Meta generated $59.9 billion in total revenue, a 24% year-over-year increase, with $58.1 billion coming from its advertising business, showcasing the profitability of its core operations, although the Reality Labs division reported a $6 billion loss, highlighting the risks associated with its AI investments.
- AI Investment Plans: Meta plans to increase capital expenditures to between $115 billion and $135 billion in 2026, primarily directed towards AI projects, and despite growing market concerns about the returns on its AI spending, the company still expects higher operating income in 2026 than in 2025, indicating some growth potential.
- Lack of Market Confidence: Due to CEO Mark Zuckerberg's significant investments in the metaverse that failed to meet expectations, market sentiment regarding Meta's AI investments is cautious, and investors will need to be patient for tangible results from its AI strategy before deciding on investment.
See More
Broadcom Approaches Q1 Earnings Report Amid AI Growth
- Earnings Expectations: Broadcom is guiding for Q1 revenue of $19.1 billion, indicating continued growth from the previous quarter, reflecting strong performance in AI semiconductor sales and demand from hyperscalers, despite margin pressures.
- Market Outlook: Bank of America analysts project the total addressable market for AI data center system spending to reach $1.4 trillion by 2030, up from $1.2 trillion, indicating robust demand for key suppliers like Broadcom.
- Shipping Volume Growth: Broadcom expects to ship approximately 3.5 million Google TPUs by 2026, with revenue from AI compute projected to reach $59 billion, as consumers transition to newer generation TPUs, solidifying its position in the AI market.
- Margin Challenges: While revenue estimates are rising, Broadcom's profitability faces challenges due to the higher margins of legacy semiconductor products compared to custom ASICs, which could lead to lower near-term profit margins, impacting investor confidence.
See More
Meta Platforms Emerges as the Cheapest Stock in the Magnificent Seven
- Valuation Advantage: Meta Platforms has a forward P/E ratio of 21.1, which is lower than the S&P 500's 21.9, indicating its relative affordability among the Magnificent Seven, potentially attracting investor interest for buying opportunities.
- Revenue Growth: In Q4 2025, Meta generated $59.9 billion in revenue, a 24% year-over-year increase, with $58.1 billion coming from social media advertising, showcasing the strength of its advertising business.
- AI Investment Plans: Meta plans to increase capital expenditures to between $115 billion and $135 billion in 2026, primarily directed towards AI projects, and despite market concerns about profitability, it still expects to achieve higher operating income in the future.
- Market Confidence Issues: The market remains cautious about Meta's high spending on AI due to past experiences with unfulfilled metaverse investments, leading to skepticism about its future profitability, although its potential for technological innovation remains significant.
See More
Sanders Accuses Tech Giants of Ignoring Workers' Interests
- Wealth Accumulation by Tech Giants: Senator Bernie Sanders accused billionaires like Elon Musk, Mark Zuckerberg, and Jeff Bezos of prioritizing profits over workers' interests in their AI investments, asserting that their true aim is to accumulate even more wealth and power.
- Concerns Over Job Losses: Sanders questioned whether these corporate leaders are genuinely concerned about potential job losses due to AI and robotics, emphasizing that the same oligarchs pushing these technologies are not worried about the future of ordinary workers.
- Political and Regulatory Scrutiny: As AI investments accelerate, tech giants are facing increasing political and regulatory scrutiny, particularly in Ireland, where a formal investigation into Musk's AI chatbot Grok has been launched regarding allegations of mishandling personal data and compliance issues.
- Social Responsibility of AI: Sanders stressed that while automation can enhance efficiency, it must work for ordinary people rather than just benefiting billionaires, calling for a shift in AI's advantages towards the working class.
See More
Meta's AI Patent Sparks Controversy Over Posthumous Activity
- User Engagement Milestone: Meta reported over 3.5 billion daily active users in Q4 across its platforms, including Facebook, Instagram, and WhatsApp, highlighting its significant influence and user retention in the social media landscape.
- AI Patent Controversy: The company secured a patent allowing the simulation of social media activity for deceased users, which has sparked considerable backlash from consumers, potentially harming its brand reputation despite no immediate plans for implementation.
- User Experience Risks: The patent suggests that users could continue to post content posthumously, which may negatively impact other users, particularly on an emotional level, leading to a decline in trust towards the platform.
- Future Strategic Considerations: While Meta has no current plans to implement this technology, the existence of the patent indicates that the company may consider leveraging it for commercialization in the future, particularly in the realms of digital legacy and virtual memorialization.
See More
Meta Platforms Valuation Lowest Among Magnificent Seven, AI Investments Under Scrutiny
- Valuation Comparison: Meta Platforms has a forward P/E ratio of 21.1, which is lower than the S&P 500's 21.9, indicating its relative affordability among the Magnificent Seven, thus attracting investor interest for potential buying opportunities.
- Advertising Revenue Growth: In Q4 2025, Meta generated $59.9 billion in revenue, a 24% year-over-year increase, with $58.1 billion coming from social media advertising, showcasing the strong profitability of its advertising business despite a $6 billion loss in its Reality Labs division.
- AI Investment Plans: Meta plans to increase capital expenditures to between $115 billion and $135 billion in 2026, primarily directed towards AI projects, although the market remains cautious about the potential returns on these investments, fearing that AI spending may not yield expected profits.
- Market Concerns: The market expresses concerns over Meta's future profitability due to a lack of confidence in its AI spending, as CEO Mark Zuckerberg's substantial investments in the metaverse have not materialized as expected, leading investors to be skeptical about the future returns from AI initiatives.
See More
Meta Platforms Stock Price Decline Amid AI Spending Concerns
- Declining Valuation: Meta Platforms has a forward P/E ratio of 21.1, which is lower than the S&P 500's 21.9, indicating that its stock is trading at a discount compared to the overall market, potentially attracting investor interest while reflecting concerns about future profitability.
- Strong Advertising Revenue: In Q4 2025, Meta generated $59.9 billion in total revenue, a 24% year-over-year increase, with $58.1 billion coming from its advertising business, showcasing the profitability of its core operations, although the Reality Labs division reported a $6 billion loss, highlighting the risks associated with its AI investments.
- AI Investment Plans: Meta plans to increase capital expenditures to between $115 billion and $135 billion in 2026, primarily directed towards AI projects, and despite growing market concerns about the returns on its AI spending, the company still expects higher operating income in 2026 than in 2025, indicating some growth potential.
- Lack of Market Confidence: Due to CEO Mark Zuckerberg's significant investments in the metaverse that failed to meet expectations, market sentiment regarding Meta's AI investments is cautious, and investors will need to be patient for tangible results from its AI strategy before deciding on investment.
See More
Broadcom Approaches Q1 Earnings Report Amid AI Growth
- Earnings Expectations: Broadcom is guiding for Q1 revenue of $19.1 billion, indicating continued growth from the previous quarter, reflecting strong performance in AI semiconductor sales and demand from hyperscalers, despite margin pressures.
- Market Outlook: Bank of America analysts project the total addressable market for AI data center system spending to reach $1.4 trillion by 2030, up from $1.2 trillion, indicating robust demand for key suppliers like Broadcom.
- Shipping Volume Growth: Broadcom expects to ship approximately 3.5 million Google TPUs by 2026, with revenue from AI compute projected to reach $59 billion, as consumers transition to newer generation TPUs, solidifying its position in the AI market.
- Margin Challenges: While revenue estimates are rising, Broadcom's profitability faces challenges due to the higher margins of legacy semiconductor products compared to custom ASICs, which could lead to lower near-term profit margins, impacting investor confidence.
See More
Meta Platforms Emerges as the Cheapest Stock in the Magnificent Seven
- Valuation Advantage: Meta Platforms has a forward P/E ratio of 21.1, which is lower than the S&P 500's 21.9, indicating its relative affordability among the Magnificent Seven, potentially attracting investor interest for buying opportunities.
- Revenue Growth: In Q4 2025, Meta generated $59.9 billion in revenue, a 24% year-over-year increase, with $58.1 billion coming from social media advertising, showcasing the strength of its advertising business.
- AI Investment Plans: Meta plans to increase capital expenditures to between $115 billion and $135 billion in 2026, primarily directed towards AI projects, and despite market concerns about profitability, it still expects to achieve higher operating income in the future.
- Market Confidence Issues: The market remains cautious about Meta's high spending on AI due to past experiences with unfulfilled metaverse investments, leading to skepticism about its future profitability, although its potential for technological innovation remains significant.
See More
Sanders Accuses Tech Giants of Ignoring Workers' Interests
- Wealth Accumulation by Tech Giants: Senator Bernie Sanders accused billionaires like Elon Musk, Mark Zuckerberg, and Jeff Bezos of prioritizing profits over workers' interests in their AI investments, asserting that their true aim is to accumulate even more wealth and power.
- Concerns Over Job Losses: Sanders questioned whether these corporate leaders are genuinely concerned about potential job losses due to AI and robotics, emphasizing that the same oligarchs pushing these technologies are not worried about the future of ordinary workers.
- Political and Regulatory Scrutiny: As AI investments accelerate, tech giants are facing increasing political and regulatory scrutiny, particularly in Ireland, where a formal investigation into Musk's AI chatbot Grok has been launched regarding allegations of mishandling personal data and compliance issues.
- Social Responsibility of AI: Sanders stressed that while automation can enhance efficiency, it must work for ordinary people rather than just benefiting billionaires, calling for a shift in AI's advantages towards the working class.
See More
