Should I buy Facebook stock in 2025? South Africa Investment Overview

What is Facebook?

How much is the Facebook stock?

The price of Facebook stock is rising this week. As of now, the stock trades at $645.05, up 0.23% in the last 24 hours and gaining 1.50% over the past week.

Investors in South Africa should note the combination of strong growth and moderate volatility, making Facebook an appealing option for portfolio diversification.

Our full analysis of the Facebook stock

Having rigorously examined Meta Platforms Inc. (formerly Facebook) in light of its latest financial statements, three-year share price performance, and the underlying sector dynamics, our proprietary analysis synthesizes fundamental and technical indicators together with global market data and peer benchmarking. The resulting picture is particularly compelling: The convergence of robust business momentum, technical signals, and innovation-driven catalysts highlights Meta as a focal point for investors navigating the rapidly evolving technology sector. So, why might Facebook stock once again become a strategic entry point into the global digital ecosystem in 2025?

Recent Performance and Market Context

Meta Platforms’ stock has demonstrated remarkable resilience and outperformance over the past twelve months, underscored by a +35.98% gain year-over-year and a 10.17% rise year-to-date, placing it firmly among the top-performing mega-cap tech equities. The current share price at $645.05 USD (as of May 30, 2025) situates it within an upward channel, well above its 52-week low of $442.65 but still below its recent high of $740.91, presenting an interesting asymmetry for investors.

Several recent developments underpin this upward trajectory:

• Q4 2024 financial results meaningfully exceeded consensus expectations, with 21% revenue growth and a near 50% expansion in net income, reinforcing market confidence.
• The integration of generative AI technologies has translated into both enhanced advertiser ROI and increased user engagement, directly fuelling revenue and profit expansion.
• Macro tailwinds favor the sector: Ongoing digital transformation and the generative AI boom continue to expand addressable markets for Meta’s core platforms, a trend echoed across global developed and emerging markets, including strong digital adoption in South Africa.

Importantly, the sector context is favorable: First-mover tech giants with cash-rich balance sheets, robust margins, and ongoing innovation—such as Meta—are leading allocation flows as investors seek growth and defensiveness in equal measure in 2025’s sometimes volatile macro environment.

Technical Analysis

Meta’s technical structure is becoming increasingly attractive for prospective entry, with several confluences suggesting the possibility of a new bullish phase:

Key Technical Indicators:

• RSI (14 days): At 62.23, Meta's RSI remains below overbought territory but reflects ongoing positive momentum, suggesting further headroom for upside before a potential reversal.
• MACD (12,26,9): A positive MACD at 19.88 underpins the ongoing strength in price action, while recent signal line behaviour hints at a consolidation phase that could precede further upward movement.
• Moving Averages: The share price has broken decisively above its key medium- and long-term moving averages, reinforcing the constructive outlook.

Support and Resistance:

• Strong technical support stands at $590, which has repeatedly held during market pullbacks—a clear indication of underlying investor conviction at current valuation levels.
• Next significant resistance is at $734, offering substantial upside for medium-term swing traders and long-term investors.

Recent Patterns:

• The 7.92% bullish breakout witnessed on May 12, 2025, signaled renewed institutional accumulation and coincided with high volume—typically an indicator of sustainable trend formation.
• Short- and medium-term technical momentum remains favorable, and the current setup appears well-supported for continued gains.

Fundamental Analysis

Meta’s underlying business remains a paradigm of scale, innovation, and operating leverage:

Revenue and Profitability:

• 2024 revenue of $164.5 billion (+22% YoY) cements Meta’s position as one of the world’s leading technology franchises.
• Net income surged 59% to $62.36 billion, powered by both top-line expansion and a step-change in operating margins (48% in Q4 2024, up from 41% in Q4 2023).
• EPS growth of 60% reflects superior efficiency and the compounding effects of platform network effects.

Valuation Appeal:

• P/E ratio (TTM): 25.19—notably below historical tech sector averages for comparable growth profiles, suggesting that robust earnings expansion is not yet fully captured by current pricing.
• PEG and P/S ratios remain attractive, especially when weighed against consensus long-term growth projections and the company’s outsized free cash flow generation ($52.10 billion in 2024).
• The stock supports a growing dividend, with a payout ratio of just 7.4% and ample room for future returns to shareholders.

Structural Advantages:

• Innovation leadership is evidenced by Meta AI, which has swiftly reached over a billion users, powering a new generation of advertising and engagement tools.
• With 3.35 billion daily active users across its platforms, Meta wields unmatched reach and resiliency against competitive encroachment.
• Cash and marketable securities of $77.81 billion provide strategic flexibility in an industry defined by rapid change and capex intensity.

Volume and Liquidity

One of the hallmarks of Meta’s stock is its deep liquidity profile and consistent trading volume:

• Average daily volume stands at 17.6 million shares, reflecting sustained institutional and retail participation—even during periods of elevated volatility.
• High float and market capitalization ($1.618 trillion) ensure that Meta remains both a favored benchmark and an accessible instrument for portfolio managers globally.
• Such volume robustness underscores not only market confidence but also minimizes price distortions often seen in thinner, less liquid names—a material advantage for ZA-based investors seeking access to US markets via JSE-listed ETFs or international trading platforms.

Catalysts and Positive Outlook

What distinguishes Meta in 2025 is the convergence of structural and tactical catalysts designed to unlock the company’s next growth phase:

AI and Technology Expansion:

• A massive $60-65 billion capital expenditure program—one of the largest ever seen in tech—will drive advances in AI, especially for content moderation, user personalization, and advertising.
• The debut and scaling of Meta AI Assistant, now serving over 1 billion users, position the company as a principal beneficiary of the AI value chain both directly (through product innovation) and indirectly (via monetization avenues).

Sector Innovation:

• Continued innovation in VR/AR and Reality Labs, including a major push into humanoid robotics, extends Meta’s TAM (total addressable market) beyond digital advertising to emerging frontier technologies.

Global User and Revenue Growth:

• Notably, 55% of revenue originates from outside the US and Canada, demonstrating true global reach and resilience against region-specific shocks—a characteristic attractive for South African and global growth investors alike.
• Family of Apps user base continues to grow, ensuring ongoing network effects and stickiness.

Sustainable Shareholder Returns:

• The quarterly dividend of $0.525 and new capital return program offer a blend of growth and yield previously absent from Meta’s profile.
• High free cash flow generation supports both aggressive innovation bets and increasing distributions over time.

Regulatory and ESG Positioning:

• Ongoing investment into digital safety, privacy, and AI ethics positions Meta to navigate regulatory scrutiny and elevate its ESG standing, a critical factor for many long-term institutional investors.

Investment Strategies

A variety of positioning strategies appear well-supported by the current confluence of signals, particularly for ZA-based investors seeking global tech exposure:

Short-Term:

• Entry at or near current levels exploits recent technical consolidation above support at $590, allowing for tactical allocation ahead of anticipated Q2 2025 updates or further AI product rollouts.
• Short-term traders may target the next technical resistance at $734, mindful of strength in both RSI and MACD.

Medium-Term:

• Investors with a medium-term horizon may capitalize on projected 8-15% YoY Q1 2025 revenue growth guidance and robust consensus upside (median target of $711.78).
• Ongoing execution against the AI and Reality Labs roadmap is likely to sustain premium multiples and upward earnings estimate revisions.

Long-Term:

• For longer-term portfolios, Meta’s blend of innovation, financial depth, and global scale support the thesis of ongoing compound growth in user base, revenue, and eventually dividends.
• Critically, the sheer scale of its AI investment and frontier technology push could create entirely new revenue streams, supporting a higher structural earnings growth rate than many peers.

Is it the Right Time to Buy Facebook?

Summing up, Meta Platforms (Facebook) exhibits an exceptional blend of robust financial performance, clear technical leadership, and an unrelenting drive towards frontier technology—all pointing to sustained value creation potential in the years ahead. Its compelling valuation, remarkable cash generation, and diversified revenue streams make it a stand-out not just within the technology sector, but across the broader global equity landscape. The stock seems to represent an excellent opportunity for investors looking to position ahead of the next wave of digital transformation and AI monetization. With technicals favoring a bullish phase and consensus estimates pointing to additional upside, the fundamentals justify renewed interest in this tech sector leader—especially for South African market participants seeking exposure to global innovation champions.

In the current context, Meta appears to be entering a new bullish phase, distinguished by powerful financial, strategic, and technical momentum—a combination that warrants serious consideration for any forward-looking investor portfolio seeking to capture the future of digital growth on a global scale.

How to buy Facebook stock in ZA?

Buying Facebook (Meta Platforms Inc.) stock online is now both straightforward and secure for South African investors, thanks to modern, regulated brokers. You can choose between two main methods: buying the shares directly (“spot buying”) to own them outright, or trading via CFDs (Contracts for Difference) to benefit from price movements without owning the underlying stock. Both approaches are fully accessible from SA and offer different benefits depending on your goals. Below, you’ll find clear explanations and examples for each method, followed by a comparison of brokers to help you choose the right platform.

Spot Buying

A spot (or cash) purchase means you are buying real Facebook shares, entitling you to dividends, voting rights, and direct exposure to Meta’s market performance. Most regulated online brokers in South Africa offer spot buying in US shares. Typical fees include a fixed commission per trade—often around $5 to $10 (about R90 to R180), plus a possible small currency conversion fee.

Informations importantes

Example: Suppose Facebook (Meta Platforms Inc., ticker: META) is trading at $645 per share. With a $1,000 investment (roughly R18,000 at current rates), you could buy about 1.54 META shares, factoring in a $5 brokerage fee.
- Gain scenario: If the share price rises by 10% to $709.50, your shares are now worth $1,100.
- Result: That’s a $100 gross gain, or +10% on your investment (excluding fees).

Trading via CFD

CFD trading lets you speculate on Facebook’s share price without actually owning the shares. This method is popular for those seeking short-term opportunities or leverage. With CFDs, you can go long (profit from price rises) or short (profit from price falls). Fees typically include a “spread” (the broker’s markup on buy/sell prices), and an overnight financing fee if you hold positions for more than a day.

Informations importantes

Example: You open a CFD on META with $1,000 (about R18,000) and use 5:1 leverage, giving you exposure to $5,000 worth of Facebook stock.
- Gain scenario: If META rises 8%, your position gains 8% × 5 = 40%.
- Result: That’s a $400 profit on your $1,000 margin (excluding spreads and financing costs).

Final Advice

Before investing, always compare brokers’ fees, trading platforms, and available features. Each platform varies in costs, minimum deposits, and ease of use, so it’s essential to find one that fits your strategy and budget. Whether you prefer the direct ownership and long-term approach of spot buying or the flexibility and leverage of CFDs, the best method ultimately depends on your investment goals. For a side-by-side comparison and to find a broker tailored for South Africans, see our detailed broker comparator further down the page.

Our 7 tips for buying Facebook stock

The latest news about Facebook

Meta Platforms stock maintained positive weekly gains, up 1.5%, showcasing ongoing strong investor sentiment. This uptick in stock price is underpinned by robust quarterly and annual financial performance, with both recent quarters and the full year beating analyst expectations across revenue and profitability metrics. For investors in South Africa, this sustained momentum is encouraging, providing a resilient option among large-cap US tech stocks that are key diversifiers for local portfolios exposed to the JSE’s volatility and limited technology sector representation. Higher global tech valuations often drive institutional flows from emerging markets like South Africa into US equities, amplifying the local impact of Meta’s performance.

Meta’s recent announcement of a $0.525 quarterly dividend signals a strengthening shareholder return profile, appealing to international investors. This new dividend—amounting to a 0.33% yield annually—reflects growing confidence in Meta’s cash flows and financial discipline. Dividend-paying US technology stocks are increasingly attractive to South African investors, both institutional and retail, who benefit from dual avenues of potential returns: capital appreciation and US dollar-denominated income. The consistent dividend policy, combined with strong cash holdings, reduces perceived risks and enhances the stock’s suitability for long-term ZA-based investors seeking exposure to the world’s AI and social media leader.

Expansion of Meta’s AI assistant, Meta AI, to 1 billion users globally emphasizes successful technology rollout and positions the company for further ad revenue growth, including in Africa. With Meta AI integrations across WhatsApp, Messenger, and Facebook platforms—widely used in South Africa—the company is poised to leverage its market penetration for hyper-personalized advertising. This development is particularly relevant given South Africa’s substantial and growing Facebook and WhatsApp user bases, ensuring that Meta’s global AI advances translate into tangible local product evolution and potentially greater advertising opportunities for regional businesses, further entrenching Meta’s competitive edge.

Financial analysts maintain a strong buy consensus on META, with a median price target suggesting 30% upside driven by AI and innovation investments. This consensus, reinforced by 42 of 45 analysts issuing buy recommendations, reveals significant institutional optimism about Meta’s forward trajectory. For South African fund managers and professional investors, such global analyst support is a critical confidence indicator, especially as local pension funds and asset managers seek reliable exposure to best-in-class technology themes via accessible US-listed shares.

Meta’s ongoing prioritization of African markets through its continent-wide connectivity and digital entrepreneurship programs bolsters its regional impact and relevance for South African stakeholders. Recent expansions in digital training, small business advertising, and connectivity infrastructure, including undersea cable initiatives and local partnerships, are deepening Meta’s presence across Southern Africa. These strategic moves not only strengthen Meta’s operational footprint in South Africa but are also catalysts for broader economic and digital ecosystem development, reinforcing its platform’s attractiveness to users, advertisers, and policymakers in ZA.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.