- Meta’s Q1 2025 revenue reached $42.31 billion, a 16% year-over-year increase, surpassing the estimate of $41.38 billion.
- Advertising revenue was $41.39 billion, matching the 16% annual increase, and beating the estimate of $40.55 billion.
- The Family of Apps generated $41.90 billion in revenue, up 16% annually, exceeding expectations of $40.89 billion.
- Reality Labs reported a revenue decline of 6.4% year-over-year, with only $412 million, compared to the anticipated $496 million.
- Other revenue rose by 34% year-over-year to $510 million, surpassing the estimate of $498.6 million.
- Operating income increased by 27% year-over-year to $17.56 billion, higher than the projected $15.52 billion.
- The Family of Apps contributed $21.77 billion to operating income, a 23% increase, above the expected $20.04 billion.
- Reality Labs incurred an operating loss of $4.21 billion, less than the forecasted loss of $4.54 billion.
- The operating margin improved to 41% from 38% a year ago, exceeding the estimated 37.5%.
- Earnings per share (EPS) rose to $6.43, compared to $4.71 the previous year, beating the estimate of $5.25.
- Ad impressions increased by 5%, although this was lower than last year’s 20% increase and below the forecasted 6.87%.
- The average price per ad rose by 10%, ahead of last year’s 6% increase and the estimated 6.75%.
- Average daily users for the Family of Apps reached 3.43 billion, a 5.9% year-over-year growth, surpassing the estimate of 3.33 billion.
- Meta revised its full-year 2025 total expense forecast to $113-118 billion, down from the previous range of $114-119 billion.
- Q2 2025 revenue is expected to be in the range of $42.5-45.5 billion.
- The anticipated full-year 2025 tax rate remains between 12-15%, barring changes in tax policy.
- Capital expenditures for 2025 are projected to be $64-72 billion, up from the prior outlook of $60-65 billion.
- Following this report, Meta’s shares increased by 4% in post-market trading, reaching a price of $571.00.
- Market activity included 70 buy ratings, 6 hold ratings, and 3 sell ratings on Meta’s stock.
Meta Platforms (Facebook) on Smartkarma
Analyst coverage of Meta Platforms (Facebook) on Smartkarma reveals a bullish sentiment from various independent analysts. Nico Rosti identifies a potential buying opportunity for Meta Platforms, noting its uptrend resilience compared to other tech stocks. Baptista Research highlights Meta’s impressive fourth-quarter performance, with revenue exceeding expectations and driven by AI-led ad targeting and engagement across its platforms.
MBI Deep Dives also contributes to the positive sentiment, noting Meta’s significant increase in Daily Active People and overall stock uptrend post-4Q’24 earnings. Baptista Research further discusses Meta’s strategic moves, including a new moderation strategy and AI-powered engagement enhancements, signaling a potential shift in user interaction dynamics and ad technologies behind the scenes. Overall, the analysts’ insights on Meta Platforms showcase optimism surrounding its financial performance and strategic advancements.
A look at Meta Platforms (Facebook) Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
According to the Smartkarma Smart Scores, Meta Platforms (Facebook) is looking at a positive long-term outlook. With a Growth score of 4, Resilience score of 4, and Momentum score of 4, the company seems to be positioned for steady advancement in the future. Meta Platforms Inc., known for its social technology applications and focus on connecting people, fostering communities, and supporting businesses, is also venturing into areas like advertisements and virtual reality.
While the Value and Dividend scores are slightly lower at 2 each, the strong performance in Growth, Resilience, and Momentum indicates promising prospects for Meta Platforms (Facebook) in the coming years. This suggests that the company may continue to innovate and expand its offerings, potentially attracting more investors and stakeholders looking for growth opportunities in the tech sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
