Meta Platforms Stock Will Soar Over the Next 5 Years. Here's 1 Reason Why.

Over the last five years, Meta Platforms (NASDAQ: META) stock has been one of the best names to own. Its shares have generated a total return of 192%, far exceeding the S&P 500' index's total return of 102% over the same period. Yet, I think Meta can match -- or even exceed -- its past performance thanks to the rise of AI-powered advertising.

First, some background. Meta generates an incredible amount of revenue, nearly $175 billion annually, or roughly $500 million per day. Almost all -- around 97% -- comes from selling ad space across its platforms like Facebook and Instagram.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Currently, most of those ads are designed and produced by advertising agencies. These companies work with brands to develop and track ad campaigns. Think Mad Men but updated for the 21st century.

That's where AI comes in. Meta has announced plans to begin rolling out AI-powered ads on its platform to allow brands to fully automate their advertising on Meta's systems by 2026.

This is a big deal, because according to Statista, ad agencies in the U.S. alone generated nearly $64 billion in 2022. If Meta's AI-produced ads are a hit, the company could begin to take some share of this lucrative market away from traditional ad agencies.

Image source: Getty Images.

What's more, it's not a far-fetched idea. Many brands may be intrigued by what Meta's powerful AI could produce. In particular, Meta could use proprietary data to personalize ads, placing a custom-built ad into a user's feed.

For example, Meta's AI could potentially use its powers of deduction to highlight the features most important to the prospective customer (safety, cost, reliability, etc.). In other words, these ads might be more effective than what ad agencies could ever hope to produce for a mass audience.

In turn, Meta might land a new source of revenue, leading to further growth and a higher stock price. So, while there is still plenty of work to be done, AI-powered ads are one reason why investors should consider buying Meta stock right now.

Should you invest $1,000 in Meta Platforms right now?

Before you buy stock in Meta Platforms, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Meta Platforms wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $660,821!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $886,880!*

Now, it’s worth noting Stock Advisor’s total average return is 791% — a market-crushing outperformance compared to 174% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 9, 2025

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jake Lerch has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy.