Meta Platforms Inc. (NASDAQ: META) continues to thrive at the center of the social media universe, leveraging its extensive user base through well-known platforms such as Facebook, Instagram, and WhatsApp. This interconnected digital ecosystem not only drives substantial revenue but also amplifies Metas expansion efforts, making social media a critical component of its long-term strategy for success. However, despite the impressive growth observed in its user metrics, Meta now finds itself under increasing scrutiny. The ongoing antitrust trial initiated by the Federal Trade Commission (FTC) poses serious challenges to the companys previously unassailable market position, potentially reshaping its future in the rapidly evolving social media landscape.

In light of these developments, investors are urged to stay informed about market moves to capitalize on outperforming stocks and enhance their investment strategies with tools like TipRanks' Stock Screener.

To better understand the health of Meta's social media business, lets examine some pivotal metrics derived from Main Street Data.

Key Metrics for Metas Social Media Business

Meta operates a suite of five highly popular social media platforms that fall under its Family of Apps (FoA) division: Facebook, Instagram, WhatsApp, Messenger, and Threads. In the fourth quarter of 2024, this FoA unit generated an impressive $47.3 billion in revenue, contributing over 97% to Metas total quarterly revenue.

As per the latest data, Metas family of daily active users (DAP) reached an astonishing average of 3.35 billion in December 2024, showcasing a robust year-over-year growth of 5%. This figure highlights the company's extensive reach and continued engagement among its user base.

Furthermore, the average revenue per user (ARPPU) soared to $14.3 in Q4 2024, marking a significant increase of 15.6% when compared to the previous year. This rise in ARPPU reflects Metas effective monetization strategies and solidifies its financial standing within the competitive social media sector.

Turning to profitability, Meta reported an operating income of $28.3 billion for its Family of Apps unit in Q4 2024. This notable figure represents a remarkable 35% increase year over year and accounts for 58.6% of the company's total revenue, underscoring the importance of the FoA division to Meta's overall business model.

Metas Social Media Dominance Faces Growing Threat

The Federal Trade Commission (FTC) has launched a significant antitrust case against Meta, claiming that the companys acquisitions of Instagram in 2012 and WhatsApp in 2014 were executed as anti-competitive maneuvers designed to eliminate possible rivals to Facebooks supremacy in the social networking arena. The implications of this case could be monumental, with the potential for the FTC to compel Meta to divest Instagram and WhatsApp if they prevail.

U.S. District Judge James Boasberg is presiding over the trial, which has the capacity to fundamentally alter the landscape for Meta. However, even in the event of a ruling favorable to the FTC, the company could leverage appeals to delay any potential breakup for several years. Consequently, the future status of Meta as a leading force in the social media domain remains uncertain.

Is META a Good Stock to Buy Now?

Despite the challenges posed by the ongoing legal battles, META stock has garnered a consensus rating of Strong Buy among 46 Wall Street analysts per TipRanks. This consensus is underscored by 42 Buy recommendations, three Holds, and one Sell rating issued in the past three months. Analysts project an average price target of $715.3 for META, suggesting an attractive upside of approximately 43% from its current trading levels.