Shares of social media giant Meta Platforms (NASDAQ: META) are trading at about $675 as of this writing, giving the stock a valuation of about 29 times earnings. That’s not cheap — especially for a company planning a massive artificial intelligence (AI) investment cycle. But once you consider how rapidly the company is growing, the valuation starts to make more sense.

Meta’s fourth-quarter revenues surged 24% year over year to $59.9 billion. This was an acceleration from 22% year-over-year growth for the full year. And the company’s already impressive engagement continued to grow sharply, with daily active users 3.58 billion in December — up 7% year over year.