Larry Ramer
2 min read
In This Article:
Meta Platforms, Inc. (META) is generating "uninspiring growth," and a number of its rivals are expanding much more quickly, LightFolio founder Landon Swan told Schwab Network recently.
Analyzing META's Growth
Meta's total daily active users fell 2.5% between April 2024 and March 2025, Swan reported. A victim of "the law of large numbers," Meta Platforms, Inc. (META) has to incorporate AI "really aggressively" in order to lift its engagement and sales, the investor stated.
Moreover, Snap's (SNAP) Snapchat and TikTok are both expanding at a faster pace than Meta's Instagram, which is the latter firm's only asset that's still growing, according to Swan.
Meta will never again be able to generate "massive" user growth, Swan warned.
Swan's Bottom Line on Meta Platforms, Inc. (META)
The owners of META stock are betting that it can "drive deeper user engagement and more value for advertisers over time," the investor said. According to Swan, "that's not a bad bet," but investors should ask themselves if Meta Platforms, Inc. (META) is "a better bet" than its "faster growing competitors," Swan said.
The Recent Price Action of META Stock
In the last month, the shares have jumped 31%, but they are down 9% in the last three months.
While we acknowledge the potential of META, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than META but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey
