Top Stock to Watch Before It Joins Tech Giants in the $3 Trillion Club
Meta Platforms Inc. is positioning itself as a strong contender to join the exclusive $3 trillion club of technology companies. Following a successful 2025, fueled by significant investments in artificial intelligence (AI), Meta’s current market capitalization stands at $1.8 trillion. Investors who acquire Meta stock now could see a substantial return as the company advances.
Current Tech Giants in the $3 Trillion Club
As of now, four major American companies have achieved valuations of $3 trillion or more:
- Nvidia: $4.6 trillion
- Alphabet: $4.1 trillion
- Apple: $3.8 trillion
- Microsoft: $3.2 trillion
AI Driving Engagement
Nearly 3.6 billion people engage with at least one of Meta’s social platforms daily. This expansive user base challenges Meta’s ability to grow its advertising revenue. To counter this, the company is focusing on enhancing user engagement through AI tools. These tools personalize content for users, meaning they see more ads, which in turn boosts revenue.
In the third quarter of 2025, AI-driven recommendations led to a 30% increase in the time users spent watching Instagram Reels, indicating the strategy’s success. CEO Mark Zuckerberg envisions further advancements, including personalized AI agents that could revolutionize how users interact with social media.
Strong Financial Performance
Meta’s financial results for 2025 showed total revenue of $200.9 billion, marking a 22% increase year over year. However, earnings per share fell by 2% to $23.49, largely due to a one-time tax provision from the previous administration. Without this provision, earnings would have grown by 26% to $30.16.
Investor Focus: Capital Expenditures
A critical aspect of Meta’s financials is its capital expenditures (capex), which hit a record $72.2 billion in 2025—an 84% increase from the previous year. Meta’s commitment to investing in data centers, chips, and AI projects reflects optimism about future growth. The company plans to escalate its capex to between $115 billion and $135 billion in 2026.
Path to the $3 Trillion Club
Based on a P/E ratio of 30.5 from its 2025 earnings, analysts suggest Meta is relatively undervalued compared to the Nasdaq-100’s P/E ratio of 32.9. Wall Street predicts earnings growth to $29.56 per share in 2026 and $34.30 in 2027. To maintain its P/E ratio, Meta’s stock would need to increase by 48% by 2027, resulting in a market cap of $2.66 trillion.
If Meta’s valuation matches that of the Nasdaq-100, a 60% increase would see its market cap reach $2.88 trillion. With a projected earnings growth of at least 4.2% in 2028, Meta could secure its place in the $3 trillion club, perhaps even prior to its forecasted timeline.
The trajectory suggests that Meta Platforms is on a promising path, making it a key stock to watch closely as it pursues its ambitious growth ambitions in the tech industry.
