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Facebook (FB) stock forecast for 2025: The future is Metaverse

By Indrabati Lahiri

Edited by Jekaterina Drozdovica

12:48, 16 December 2021

Chiang Mai Thailand. Mar 08, 2020. Woman holds smart phone with facebook application on the screen. facebook is a photo-sharing app for smartphones
Facebook (FB) stock forecast for 2025: The future is Metaverse

Facebook (FB), which renamed itself Meta Platforms on 28 October, is one of the most successful tech companies of all time. Since its launch in 2004, the social media giant has grown in leaps and bounds to encompass billions of users across its platforms: Facebook, Instagram and WhatsApp.

Despite enormous success, the tech behemoth is surrounded by controversies and scandals, which may be one reason for its rebranding. Meta Platforms could provide Facebook with an opportunity to take its legacy further, into unknown territory, and therefore serves a key factor shaping the Facebook stock price prediction for 2025. 

However, this is a big leap and with the world’s eyes on Meta, it is still uncertain whether this gamble will pay off. 

Facebook stock

Facebook stock analysis: A story of success

Since its initial public offering (IPO) in 2012 at $38 per share, Facebook’s share price has grown over 700%. In September 2021, FB marked a record high of $384.33, yet slumped to $333 since then. 

During the pandemic-induced market crash in March 2020, Facebook fell to $146, yet it recovered quickly, reaching its pre-pandemic level of $217 in May 2020. The stock has risen 153% from the pandemic dip to the September 2021 high amid rapid digitalisation and tech boom. 

Facebook stock chart, 2012-2021

The future is Metaverse

On 28 October, chief executive Mark Zuckerberg announced that Facebook will be changing its name to Meta Platforms as the company intended to be one of the pioneers in building the metaverse.

The metaverse is characterised by technology with strong emphasis on two-dimensional (2D) and three-dimensional (3D) aspects, enabling users to experience more virtual and augmented reality, effectively allowing them to “live” in a digital universe.

In this space, people would be able to interact mainly through online avatars or personas. Several initial versions of the metaverse have already been implemented in a number of video games, such as Roblox.

 

The social media network has often come under fire for a number of controversies such as whistleblower accusations and major outages. 

Rebranding as Meta could give Facebook a much-needed opportunity to focus on technology building as they have long claimed they want to, which could serve as an important factor in evaluating the Facebook stock price forecast for 2025. 

The rebranding may open up a whole new market especially as interest in the metaverse and its various functions and possibilities grow, yet it will take time for the company to fully develop this vision.

“The metaverse isn’t a single product one company can build alone. Just like the internet, the metaverse exists whether Facebook is there or not,” Facebook said in a September note.

“And it won’t be built overnight. Many of these products will only be fully realised in the next 10-15 years,” the company added.

Could wearables drive further growth?

Another key area under development for the foreseeable future is virtual reality (VR), which will be vitally important for Facebook to develop a credible and sustainable version of their metaverse. 

Facebook is serious about this goal. In its third-quarter earnings report the company said in the next several years it would invest $10bn in Facebook Reality Labs, a separate division of the company under the new reporting structure, which will include augmented and virtual reality-related hardware, software and content. 

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In 2014 Facebook acquired Oculus, its division that produces virtual reality headsets in an effort to build a VR content ecosystem.

“Launch of VR headset, Rift and Oculus Quest, its first all-in-one headset with no wires and full freedom of movement, are a step forward to that goal,” said a Zacks analyst report on Meta.

In 2020, the company announced a multi-year partnership with Essilor Luxottica, the owner of Ray-Ban. The two firms have already released the first generation of smart sunglasses called Ray-Ban Stories that allow users to take photos and videos hands-free.  

On the other front, Facebook’s Project Aria is developing the first generation of wearable augmented reality (AR) devices. A device that is worn like regular glasses will help Facebook build the software and hardware necessary for future AR applications. 

“With project Aria, we are building towards a future where our devices disappear into the flow of everyday life, enhance the world around us as we go, and render our devices more human in design and interactivity,” Facebook said. 

The development of smart wearable devices compatible with the metaverse could become the key factor shaping the Facebook share price prediction for 2025 if the company succeeds on this path. 

Reputational risks and regulatory hurdles

While Facebook has navigated a number of hurdles and obstacles such as privacy concerns, tax avoidance, user data handling and more, there are still considerable risks moving forward with its vision for the metaverse, which could affect Facebook’s stock price prediction for 2025.

One of the areas of concern is that the rebranding of the company is being touted as a potential diversion from Facebook’s alleged part in misinformation and espionage. 

Another risk came after the UK’s Competition and Markets Authority (CMA) ordered Facebook to sell Giphy after finding Facebook’s acquisition of the animated image provider could harm social media users and UK advertisers. 

Regulatory hurdles may be a continuous risk factor for Facebook, according to Zacks, as the company has already been sued by US Federal Trade Commission (FTC) for monopolistic behaviour, and may be facing another investigation. 

Can revenue streams keep the momentum?

Facebook has posted consistent revenue and income growth, including the latest third quarter, which saw revenue rise 35% from a year ago to $29bn. Net income grew 17% to $9.19bn. 

Investment research firm Zack’s said Meta’s growth path may stall on rapidly rising costs amid such ambitious projects such as Metaverse. Lower earnings could therefore affect FB share price in 2025.  

“As the company continues to ramp up investments on products (Video, AR/VR and AI) as well as security, costs are already on the rise. Meta is already on a hiring spree, especially engineers and people involved in maintaining safety and security. This is expected to hurt profitability,” Zacks analysts said. 

Facebook (FB) stock forecast for 2025

While analysts rarely give long-term forecasts and there are no Facebook price targets for 2025, the outlook for the company looks robust according to numerous algorithm-based forecasting services. 

According to CoinPriceForecast, Facebook stock price could hit $637 in 2025. WalletInvestor echoed the optimistic outlook, forecasting the price to reach $668 by December 2025. 

Gov Capital gave the most bullish FB stock projections for 2025, foreseeing the price to jump to $ 1,701.513 by the end of 2025.

Note that algorithm-based predictions can be wrong and past performance does not guarantee future returns. You should always conduct your own research before making any investment or trading decision.

FAQs

How much will Facebook stock price be in 2025?

According to CoinPriceForecast, Facebook stock price could hit $637 in 2025. WalletInvestor echoed the optimistic outlook, forecasting the price to reach $668 by December 2025. 

Gov Capital gave the most bullish Facebook stock forecast, foreseeing the price to jump to $1,701 by end 2025. 

Note that algorithm-based predictions can be wrong and past performance does not guarantee future returns. You should always conduct your own research before making any investment or trading decision.

Will Facebook stock go up or down in 2025?

Analysts rarely give long-term piece targets, yet according to algorithm-based forecasting services Facebook stock is likely to go up in 2025. 

However, this greatly depends on how well the company is managed and whether the Meta rebranding is a success or failure. 

Since this is a fairly big move, there are great chances of share prices going either way, depending on the plans in place.

Read more: Lucid Group (LCID) stock forecast: Can the EV maker regain growth?

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