Meta Platforms' AI Ad Revenue Hits $60 Billion, Surpassing OpenAI
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Advertising Revenue Growth: Meta generated $51.2 billion in total revenue during Q3, with $50 billion from advertising, reflecting a 26% year-over-year increase, although it failed to excite Wall Street, indicating strong performance in its advertising segment.
- AI Product Advantage: The Advantage+ product from Meta has reached a $60 billion annual revenue run rate, nearly tripling since Q1, demonstrating significant advancements in targeted advertising technology that will further drive revenue growth.
- Market Position Enhancement: Analyst Beth Kindig suggests that Meta has quietly become the second-largest AI monetizer after Nvidia, with its AI ad business skyrocketing from zero to $60 billion in just three years, showcasing its potential in the AI sector.
- Capital Expenditure Challenges: Despite the optimistic outlook for Meta's AI ad business, its capital expenditures are set to increase significantly in 2026, which may impact cash flow, prompting investors to monitor the balance between spending and revenue growth.
Analyst Views on META
Wall Street analysts forecast META stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for META is 832.06 USD with a low forecast of 655.15 USD and a high forecast of 1117 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
43 Analyst Rating
36 Buy
6 Hold
1 Sell
Strong Buy
Current: 665.950
Low
655.15
Averages
832.06
High
1117
Current: 665.950
Low
655.15
Averages
832.06
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
