Sorry you didn't invest in Meta Platforms' initial public offering 11 years ago? Don't be. You probably did much better on other S&P 500 stocks.
Had you invested $10,000 in Meta (then called Facebook) at the stock's first day's closing price, you'd have $64,250 now, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith. That might sound great. After all, it's a gain of 543% or $54,250. It also topped the 223% gain by the S&P 500 itself in that time.
"It's astonishing how much its profits have grown," said Whitney Tilson of Empire Financial Research, commenting on the rise of the social media giant's fundamentals.
That's true. Meta's annual profits are 1,500% higher now than in 2012. But investors could have done much better on other S&P 500 stocks.
Meta's IPO Rise: Not So Impressive
How much better?
Meta's return from its first-day close following its IPO only ranks as the 87th best current S&P 500 stock you could have owned in that time. The best by far? You would have made more than $1 million, or 10,252%, had you invested in computer chipmaker Nvidia on May 18, 2012 instead.
Nvidia's adjusted profit per share is up 1,380% since 2012. But investors see greater long-term potential, especially as the company's chips weave into seemingly every high-growth area from gaming to AI.
Other S&P 500 Stocks That Beat Meta
Remarkably, Meta's run since its IPO only puts it in the second decile of top S&P 500 stocks.
Choosing better would have made an enormous difference to your net worth. Tesla, for instance was the No. 2 best S&P 500 stock since Meta's IPO. Shares of the electric car maker are up 9,704% since then, turning a $10,000 investment into $980,444. That means you would have made an extra $916,194 had you invested in Tesla rather than Meta.
Meta didn't just get topped by household name growth stocks, either. The No. 3 top stock since Meta's IPO is glucose monitoring company, Dexcom. Your $10,000 plunked down on the well-managed firm in May 2012 would be worth $450,067 now, for a gain of 4,406%.
That's not to belittle Meta's gains. But it is a reminder that sometimes the best S&P 500 stocks aren't the ones getting the most fanfare.
Biggest Gains On $10,000 Since Meta's IPO
Meta isn't one of them
| Company Name | Ticker | Stock % ch. | Gain on $10,000 investment |
|---|---|---|---|
| NVIDIA | 10,264.4% | $1,025,232 | |
| Tesla | 9,694.6% | $970,444 | |
| DexCom | 4,406.1% | $440,067 | |
| Axon Enterprise | 3,736.3% | $373,743 | |
| Netflix | 3,555.2% | $355,569 | |
| Broadcom | 2,173.7% | $217,265 | |
| Monolithic Power Systems | 2,146.5% | $214,893 | |
| Cadence Design Systems | 2,085.1% | $208,678 | |
| Enphase Energy | 1,927.4% | $193,217 | |
| Fair Isaac | 1,797.1% | $179,326 | |
| Meta Platforms* | META | 540.2% | $54,250 |
Sources: S&P Global Market Intelligence, IBD, * — shown for comparison
Follow Matt Krantz on Twitter @mattkrantz
