Can Meta Stock Hit $3,727 per Share?

Meta Platforms (NASDAQ: META) presently trades for astir $535 per share. However, there's a extremity for it to scope $3,727 per stock by 2031. That's a long way distant from today's price, but wherefore is this the target?

The societal media elephantine is offering a monolithic payout to executives if they tin scope a $9 trillion marketplace capitalization by 2031, which calculates to a $3,727 banal price. Can Meta bash this? Or is this a lawsuit of aiming for the stars truthful it'll extremity up connected the Moon?

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Meta Platforms is the genitor institution of societal media sites similar Facebook, Instagram, Threads, Messenger, and WhatsApp. It besides has different bets successful the AI realm and virtual world (VR) and augmented world (AR) via its Reality Labs division. Currently, Meta has a marketplace worth of astir $1.35 trillion, truthful it would request to emergence 567% to scope $9 trillion.

It's apt intolerable for Meta to execute the $9 trillion extremity based connected its societal media platforms alone, truthful it needs to make different capabilities, which is what is astatine the bosom of this $9 trillion marketplace headdress projection. Meta has poured billions of dollars into its Reality Labs part to make a user merchandise that takes AI from a instrumentality similar a telephone oregon machine to a much utile merchandise successful regular life, similar glasses.

Meta's eventual extremity is to make AI glasses that tin assistance with regular activities. If it is palmy successful this approach, Meta could make the adjacent hottest user merchandise that whitethorn beryllium capable to propel Meta into the scope it's aiming to achieve, especially if it tin connection it with a subscription.

Still, that's a lofty goal. Let's accidental that Meta tin merchantability 250 cardinal AI glasses and charges a $50 per period subscription fee. That would make $150 cardinal successful yearly revenue. Over the past 12 months, Meta has generated astir $200 cardinal successful revenue. So, this wouldn't beryllium astir capable caller concern to warrant the banal dramatically rising to a $9 trillion valuation.

There could beryllium different products successful the pipeline that could assistance adjacent the spread betwixt today's stock terms and the $3,727 target. However, I'm not buying it. I deliberation Meta volition beryllium a palmy banal prime implicit the adjacent fewer years arsenic it integrates AI much efficaciously into societal media and launches immoderate breathtaking products. However, a $9 trillion institution is thing that seems a spot far-fetched, and Meta whitethorn not get there.