Most of Meta’s value—about 98% of its revenue—comes from advertising. Think about it: you see an ad for dog food, the company pays Meta. You see an ad for a new phone, the brand pays Meta.
Facebook Business: Principles Of Growth
But here’s the genius part: they know so much about you. They know you like hiking, that you just bought a new couch, and that your cat is named Miso. Advertisers pay a premium because that targeting works scarily well.
It’s like having a billboard that follows you around and changes its message based on what you had for breakfast. Creepy? Maybe. Lucrative? Absolutely.
What About the Metaverse Hype?
Remember when Mark Zuckerberg changed the company name to Meta and bet everything on virtual reality? For a while, investors were skeptical. The Reality Labs division (Oculus, VR headsets) was losing billions a year.
But fast-forward to 2026: artificial intelligence is the new shiny toy. Meta is pouring cash into AI, smart glasses, and better algorithms. Wall Street loves a good AI story right now. That hype alone added hundreds of billions to the company’s value in recent months.
So, the company is worth a trillion-plus partly because investors think the next big thing is coming. It’s a bet, but a huge one.
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It’s been 10 years since Microsoft invested in Facebook — now Facebook
