Stock Analysis on Net

Meta Platforms Inc. (NASDAQ:META)

$24.99

Net Profit Margin
since 2012

Microsoft Excel

Calculation

Meta Platforms Inc., net profit margin, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

1 US$ in millions


Revenue Trends
Revenue has shown consistent and substantial growth over the analysis period. Starting at approximately US$5.1 billion in 2012, revenue increased steadily each year, reaching around US$164.5 billion by 2024. This represents a strong long-term upward trend, with particularly notable accelerations in the later years, indicating expanding business operations and market presence.
Net Income Trends
Net income exhibited significant growth from a modest US$53 million in 2012 to a peak of over US$62 billion in 2024. There are periods of rapid increases, notably between 2015 and 2017, and a remarkable surge from 2023 to 2024. However, some fluctuations are observable, such as a decline from US$22.1 billion in 2018 to US$18.5 billion in 2019, and a drop from US$39.4 billion in 2021 to US$23.2 billion in 2022, followed by a strong recovery. Such fluctuations imply possible impacts from operational challenges or market conditions.
Net Profit Margin Analysis
The net profit margin percentage reveals considerable variability over the years. Initially, the margin was very low at about 1% in 2012, then climbed sharply to over 39% in 2017 and 2018, demonstrating increased profitability efficiency during that period. However, the margin decreased notably to 19.9% in 2022 before rebounding to nearly 38% by 2024. This variability points towards changing cost structures, pricing strategies, or external market factors influencing the company’s profitability relative to revenue.
Overall Insights
The data depicts a company with robust revenue growth and generally improving profitability over the long term. The company effectively converted growing revenues into higher net income, especially between 2012 and 2018 and again after 2022. Nonetheless, intermittent declines in net income and profit margins suggest periods of financial pressure or investment phases that temporarily affected profitability. The recovery and strong margins toward the end of the period suggest successful responses to these challenges, ensuring sustained financial health.

Comparison to Competitors

Meta Platforms Inc., net profit margin, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).


Comparison to Sector (Media & Entertainment)

Meta Platforms Inc., net profit margin, long-term trends, comparison to sector (media & entertainment)

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).


Comparison to Industry (Communication Services)

Meta Platforms Inc., net profit margin, long-term trends, comparison to industry (communication services)

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).