Meta Platforms outperformed analysts’ expectations in Q1 2025, reporting revenue of 42.31 billion USD and earnings of 6.43 USD per share, supported by growth in its advertising business, user base, and AI investments.
Meta Platforms, Inc. (NASDAQ: META) reported strong financial results for Q1 2025. Revenue rose to 42.31 billion USD, while earnings per share reached 6.43 USD, significantly beating analysts’ expectations. This growth was driven by continued expansion in the advertising business, increased user engagement, and stepped-up investments in AI and infrastructure. Despite Meta’s cautious forecast for Q2 2025, investors reacted positively – META shares gained more than 8% following the report’s release. Experts forecast further growth in the META share price, although there is a risk of a decline to 480 USD before any potential rebound.
This article examines Meta Platforms’ business and revenue streams, analyses the company’s quarterly reports, and conducts a fundamental analysis of META. It also includes experts’ forecasts for Meta’s shares for 2025 and assesses Meta’s stock performance, which serves as the basis for Meta Platforms’ stock forecast for the entire year.
Meta Platforms, formerly known as Facebook, was founded in 2004 by Mark Zuckerberg and his Harvard classmates Eduardo Saverin, Andrew McCollum, Dustin Moskovitz, and Chris Hughes. It was initially a social network created for Harvard students but soon expanded rapidly, becoming one of the world’s largest communication platforms. Meta’s core operations include the development of social networks such as Facebook, Instagram, and WhatsApp, as well as advancing virtual and augmented reality technologies through its Reality Labs division. The company focuses significantly on developing the metaverse, as reflected in its rebranding in 2021. Meta went public on 18 May 2012, and its IPO ranked among the most prominent tech IPOs in history.
Image of the company name Meta Platforms, Inc.Meta Platforms revenue mainly comes from the following sources:
Thus, Meta Platforms’ primary source of revenue is advertising on its social platforms, followed by income from virtual reality sales and services and additional proceeds from other sources.
Meta announced solid financial Q2 2024 results. Below are the figures compared to the same period in 2023:
Advertising remains the primary revenue stream, contributing 96% of the company’s total revenue. The Reality Labs division, which specialises in developing virtual and augmented reality (VR and AR) technologies, has only generated losses so far. By the end of Q2 2024 results, Reality Labs’ loss reached 4.50 billion USD, a 21% increase.
On 30 October, Meta released its Q3 2023 report. Below are the key figures compared to the same period in 2023:
CEO Mark Zuckerberg explained that revenue growth was driven by advancements in artificial intelligence (AI), which are actively integrated into the company’s applications and business processes. He highlighted the notable success of Meta AI, the rollout of the Llama AI model, and the development of AI-powered smart glasses.
CFO Susan Li shared the company’s forecast, expecting Q4 2024 revenue to range between 45.00 billion and 48.00 billion USD. She also revised the company’s total expense forecast for 2024, lowering it to the 96.00-98.00 billion USD range, down from the previous estimate of 96.00-99.00 billion USD. Li emphasised that the operating losses of the Reality Labs division, which focuses on virtual and augmented reality (VR and AR), would significantly increase year-over-year due to ongoing development and investments aimed at scaling the ecosystem. Additionally, Li mentioned that Meta expects substantial growth in capital expenditures in 2025, including increased spending on infrastructure.
Both Zuckerberg and Li also noted the growing number of legal and regulatory challenges, particularly in the European Union and the US, which could significantly affect Meta’s business and financial results.
Overall, Meta’s management expressed optimism about the company’s current performance, which is driven by progress in AI technologies and strategic investments. However, they also pointed out that external factors could influence future results.
On 29 January 2025, Meta published its earnings report for Q4 2024. Below are the key figures compared to the same period in 2023:
In his comments on the report, Zuckerberg highlighted advancements in Artificial Intelligence (AI) and expressed optimism about scaling these technologies in 2025, including the introduction of personalised AI assistants. He emphasised the company’s commitment to building an “extensive computing infrastructure,” which implies significant investments in AI. His vision includes creating AI that can write and deploy code, unlocking new opportunities for business and the market.
Zuckerberg also pointed to progress in the development of computerised smart glasses, suggesting that 2025 could be a key year for understanding the market potential of AI-powered glasses.
Regarding DeepSeek, he acknowledged the “groundbreaking” developments that Meta is still trying to comprehend, with plans to integrate some of these innovations into its products. Despite DeepSeek’s achievements, Zuckerberg stated that “it is too early to form a definitive opinion” on how these developments may impact Meta’s infrastructure and capital investment plans. He stressed that the company’s strategy of large-scale AI infrastructure investments will remain unchanged, viewing this as a long-term strategic advantage.
Zuckerberg noted that DeepSeek is a new competitor in this market. At the same time, the decline in demand for computing resources (GPUs) is by no means certain, as running AI models still requires substantial computing power, especially given the scale of Meta’s operations.
On 30 April, Meta published its Q1 2025 report for the period ended 31 March. Key figures compared to the same period in 2024 are as follows:
Meta made a confident start to 2025, delivering strong results and beating analysts’ expectations. Revenue rose by 16%, while earnings per share increased by 35%, well ahead of market forecasts. Advertising remains the primary growth driver, with revenue growth of 16.2%, driven by higher prices and an increase in impressions. Meanwhile, the user base for Meta’s products continues to expand – daily active users reached 3.43 billion, up 6% year-on-year.
The company is also placing a major focus on artificial intelligence. Meta raised its capital expenditure forecast for 2025 to a range of 64-72 billion USD (up from a previous estimate of 60-65 billion USD), allocating investment towards developing data centres and acquiring infrastructure to support its AI initiatives.
For Q2 2025, Meta expects revenue in the range of 42.5 to 45.5 billion USD, which aligns with analysts’ expectations. However, management noted potential short-term risks, including reduced advertising activity from Asian companies and broader economic uncertainty.
For investors, Meta remains one of the most promising companies in the technology sector. A strong operational base, a growing user audience, and large-scale investments in AI make the stock an attractive option for those seeking exposure to innovation and long-term growth.
Considering the possibility of investing in Meta Platforms, examining the company’s strengths and weaknesses is essential. Its advantages include the following:
Meta Platforms’ business weaknesses may include the following:
Although Meta’s weaknesses are substantial, Zuckerberg must be acknowledged for effectively managing the company’s challenges. Having already faced some of these issues, he can apply the experience gained to future scenarios.
On the weekly timeframe, Meta Platforms’ stock traded within an ascending channel, but in March, META’s share price broke through the trendline, signalling the end of the uptrend. Currently, the stock is testing the previously broken trendline, which now acts as resistance. Based on the current performance of Meta Platforms’ stock, the potential price movements in 2025 are as follows:
The base-case forecast for Meta Platforms’ shares suggests a rebound from resistance at 630 USD, followed by a price decline to support at 480 USD. If this support does not hold, META’s share price could drop to 330 USD.
The optimistic forecast for Meta Platforms’ stock suggests a breakout above the 630 USD resistance. In this case, META’s share price would return to the ascending channel and could reach the upper boundary of the channel at 850 USD.
Meta Platforms, Inc. stock analysis and forecast for 2025The following factors could negatively affect Meta Platforms’ revenue and stock value:
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.