Could Meta Be the Next $2 Trillion Titan?

With over 3.4 billion people engaging with at least one of Meta’s apps daily, the company already owns the world’s largest digital attention network. But now, it’s not just about scale, it’s about intelligence. Meta has embedded AI deep into its core product experiences, reshaping how users interact with content and how advertisers connect with audiences.

CEO Mark Zuckerberg recently revealed that AI-powered recommendations have lifted time spent on Facebook by 7% and Instagram by 6% over just six months. But the real breakout? Threads, the Twitter rival, saw a 35% jump in engagement thanks to AI-curated content.

Behind this engagement engine is Meta’s advanced large language model family, Llama, now in its fourth iteration. Llama 4, released in 2025, powers not just content curation but also the new Meta AI assistant, which already has nearly 1 billion monthly users. That level of adoption in under a year is staggering, and rare.

The assistant lives across Meta’s ecosystem and can do everything from answering complex questions to generating images and joining group chats with helpful suggestions. It’s not just a chatbot but a networked intelligence layered into apps that billions already use.

Key Points

• Meta’s Llama 4 powers everything from content recommendations to its AI assistant, driving sharp engagement gains across Facebook, Instagram, and Threads.
• Meta’s AI tools now let businesses auto-generate ads with just a budget and goal—boosting ad efficiency and stickiness on a platform that still earns 97% of revenue from advertising.
• Massive AI investments, strong profits, and underappreciated platforms like Llama position Meta to join the $2T club—and possibly exceed it—as AI monetization scales.

AI Is Revolutionizing Meta’s Ads Business

Here’s what may be Meta’s masterstroke: turning AI into a self-serve ad agency for the masses.

Advertisers, particularly small businesses without marketing teams, can now feed Meta a budget and a goal and let AI do the rest. Text? Images? Audience targeting? All AI-generated. It’s like giving every corner store a Madison Avenue agency on demand.

Zuckerberg noted that usage of AI creative tools by advertisers jumped 30% in just one quarter. That kind of tool adoption suggests the platform could become stickier, driving more ad spend per business. And because Meta still generates over 97% of its revenue from ads, any increase in efficiency has a compounding effect on profitability.

Meta’s Big AI Bet

To fuel this transformation, Meta is spending like never before.

In Q1 2025 alone, Meta shelled out $13.6 billion on data centers, custom AI chips, and infrastructure. It expects to invest as much as $72 billion this year—up from initial guidance of $60–$65 billion. That’s more than the GDP of Luxembourg.

Some might balk at that figure, especially since Meta’s free cash flow fell 17% year over year as a result. But investors with a long-term lens understand that AI platforms, like cloud infrastructure in the early 2010s, require massive upfront investment before the payoff begins.

Meta’s gross margins remain healthy, and net income in Q1 2025 surged 35% year-over-year to $16.6 billion, proving it can invest aggressively while still growing profitably.

The Valuation Math That Could Put Meta Over $2 Trillion

Here’s where it gets interesting: Meta’s trailing-12-month earnings per share (EPS) sits at $25.64, and its stock trades at a price-to-earnings ratio of around 23x. In comparison, the average P/E ratio of the current $2 trillion club is almost 50% higher.

If Meta merely re-rated to that peer average without growing earnings at all, its stock price would rise substantially putting its market cap well above $2 trillion.

But even assuming a more conservative P/E nearer 30x, it would need only a 7% EPS increase from current levels to clear the $2 trillion line.

What Investors Might Be Missing

While the spotlight often shines on Nvidia’s AI chips or Microsoft’s Azure dominance, Meta is quietly building the distribution layer of AI. Llama isn’t just powering Meta products, it’s open-sourced and increasingly being adopted by third parties. In 2024, Meta’s Llama 2 was downloaded millions of times by developers building their own AI tools.

If Meta can monetize Llama adoption the way Microsoft monetized Windows and Office decades ago, it could unlock an entirely new revenue stream—AI as a platform.

Furthermore, Meta has hinted at deeper ambitions in AI agents, autonomous digital entities that can perform tasks, shop on your behalf, or even represent you in virtual meetings. Imagine a future where your AI assistant not only answers your questions, but handles your schedule, bookings, and purchases, all within WhatsApp or Instagram.

Meta’s Ascent Is Just Beginning

While many investors still associate Meta with social media ads and privacy concerns, the company’s pivot into applied AI is more than a side hustle, it’s a reinvention. With nearly 4 billion daily users, the most downloaded new AI assistant in the world, and a platform poised to automate marketing for millions of businesses, Meta has built a powerful springboard.

The $2 trillion club might need to set another seat at the table because Meta is coming.