This "Magnificent Seven" Stock Is Up 577% Over the Last Decade, And It's Still a Top S&P 500 Bargain

Meta Platforms (NASDAQ: META) is up astir 2,000% since its 2012 IPO, but for each its success, it's been a hated banal overmuch of the way.

Throughout its history, the institution has been saddled with scandals, boycotts, billion-dollar fines, and antitrust attacks. It's been derided for strategical decisions similar its metaverse propulsion and criticized for the addictive quality of its product.

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Despite each that, Meta has rewarded investors with monster gains. The banal is up 577% implicit the past 10 years, arsenic the illustration beneath shows.

Meta's strengths were connected show successful its latest net report, which sent shares up 10.4% connected Thursday.

Revenue jumped 24% to $59.9 billion, and margins narrowed arsenic it ramped up spending connected infrastructure and different areas, though operating income inactive roseate 6% to $24.7 billion.

Management besides pleased investors with its guidance, calling for gross of $53.5 billion-$56.5 cardinal successful the archetypal quarter, implying gross maturation of 30%, which would beryllium its fastest maturation complaint successful 5 years. CFO Susan Li credited its AI-driven investments successful advertising, which improved targeting and measurement, and it adjacent added a generative AI instrumentality to assistance advertisers make ads.

Even aft jumping 10% connected the net report, the banal inactive looks similar a bargain.

Adjusting for a taxation valuation complaint from the Big Beautiful Bill, Meta generated $74.7 cardinal successful nett income past year, oregon $29.04 successful net per share.

Based connected that nett figure, the banal presently trades astatine a price-to-earnings ratio of 25.4, which makes it some cheaper than the S&P 500, which trades astatine a P/E of 28.1, and immoderate of its "Magnificent Seven" peers.

As you tin see, Meta trades astatine a discount of much than 20% to each of its "Magnificent Seven" peers, according to the numbers above, contempt presently increasing gross faster than each of those companies but Nvidia.

Meta has historically traded astatine a discount, and there's nary different institution of its size that has grown arsenic accelerated arsenic it has, astatine specified a comparatively debased valuation. The illustration beneath shows its gross maturation complaint and P/E ratio implicit the past 8 years.

As you tin see, Meta's P/E ratio has averaged 26 during that period, which is astir successful enactment with the S&P 500, portion its gross maturation has averaged 23%. It would beryllium hard to find different banal that has grown that accelerated astatine specified a debased for truthful galore years.