Meta Platforms Reports 24% Revenue Growth in Q4 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy META?
Source: Fool
- Significant Revenue Growth: Meta Platforms reported a 24% revenue increase in Q4 2025, surpassing analyst expectations, which highlights the company's robust performance in the social media sector and boosts investor confidence.
- Strong Stock Performance: Over the past three years, Meta's stock has surged by 387%, and despite historical volatility, the current growth trend indicates a positive market outlook for its future.
- Surging Capital Expenditures: Meta plans to allocate between $115 billion and $135 billion in capital expenditures for 2026, representing a 74% increase from the $72 billion budgeted in 2025, reflecting the company's commitment to artificial intelligence and data center development, although such high spending may raise investor concerns.
- Attractive Valuation: Despite the increased spending, Meta's forward price-to-earnings ratio stands at 24.8, suggesting that the current stock price remains appealing, and when considering the company's revenue and profit growth, investors maintain an optimistic view on holding the stock.
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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 824.71 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.
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 691.700
Low
655.15
Averages
824.71
High
1117
Current: 691.700
Low
655.15
Averages
824.71
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.
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- Earnings Beat: Meta's Q4 2025 earnings report exceeded consensus by approximately $1.3 billion, with a 24% year-over-year increase in advertising revenue, demonstrating the effectiveness of AI investments and boosting market confidence in future growth.
- Capex Plans: CEO Zuckerberg announced plans to increase AI-related capital expenditures to between $115 billion and $135 billion in 2025, surpassing Wall Street's expectation of nearly $111 billion, indicating strong confidence in AI infrastructure.
- Return on Tech Investment: By doubling the number of GPUs used for training its ad ranking model, Meta has enhanced its ad targeting capabilities, which is expected to further drive ad revenue growth, particularly as its video generation tools achieve a $10 billion annual revenue run rate, growing three times faster than the overall ad business.
- Risk Warning: While the market is optimistic about Meta's AI spending, investors should remain cautious of Zuckerberg's history of overextending into other technologies, especially given Reality Labs' cumulative losses exceeding $80 billion, ensuring that AI investments continue to yield returns.
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- New Agreement Signed: The companies have signed a long-term Power Purchase Agreement (PPA) for the 176 MWdc Skull Creek Solar Plant in Texas, further advancing Meta's renewable energy initiatives in the state and supporting its goal of 100% clean energy operations.
- Capacity Expansion: Meta and Zelestra now have approximately 1.2 GWdc of solar capacity across seven projects in the US, all scheduled to be operational by 2028, significantly enhancing their competitive position in the renewable energy market.
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Meta Platforms Reports Strong Q4 2025 Earnings Growth
- Significant Revenue Growth: Meta reported a 24% revenue increase in Q4 2025, surpassing analyst expectations, which underscores the company's robust performance in the social media sector and further solidifies its market position.
- Substantial Capital Expenditure Increase: The company plans to allocate between $115 billion and $135 billion for capital expenditures in 2026, representing a 74% increase from the $72 billion budgeted in 2025, demonstrating a strong commitment to future technology investments, particularly in artificial intelligence.
- Strong Stock Performance: Meta's stock has surged 387% over the past three years, and despite significant declines in 2018 and 2022, the current valuation remains attractive to investors, with a forward price-to-earnings ratio of 24.8, indicating market confidence in its future growth.
- AI Investment Strategy: Founder and CEO Mark Zuckerberg emphasized that Meta is fully committed to building data centers and developing a large language model called Avocado, aiming to achieve the vision of personal superintelligence, which could drive higher growth potential for the company in the future.
See More
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- Capital Expenditure Expectations: Alphabet's earnings report indicates a projected capital expenditure of $175 billion to $185 billion for 2026, significantly exceeding the previous estimate of $119.5 billion and nearly doubling last year's investment, reflecting its ambition in AI infrastructure.
- Meta's Capital Spending Guidance: Meta anticipates capital expenditures between $115 billion and $135 billion for 2026, which, while lower than Alphabet's forecast, underscores the company's focus on AI, with CEO Mark Zuckerberg stating that AI will profoundly change operations.
- Market Sentiment Shift: Meta's stock dipped 0.1% in pre-market trading on Thursday, with retail message volume increasing by 42% in 24 hours; however, sentiment shifted from 'bullish' to 'bearish', indicating investor concerns about the company's future prospects.
- AI as a Growth Engine: Zuckerberg emphasized during the earnings call that Meta is positioning AI as a core growth engine, planning significant investments and innovations in 2026 to enhance product quality and internal efficiency, despite a 5% decline in META stock over the past 12 months.
See More
Meta Platforms Reports 24% Revenue Growth in Q4 2025
- Significant Revenue Growth: Meta Platforms reported a 24% revenue increase in Q4 2025, surpassing analyst expectations, which highlights the company's robust performance in the social media sector and boosts investor confidence.
- Strong Stock Performance: Over the past three years, Meta's stock has surged by 387%, and despite historical volatility, the current growth trend indicates a positive market outlook for its future.
- Surging Capital Expenditures: Meta plans to allocate between $115 billion and $135 billion in capital expenditures for 2026, representing a 74% increase from the $72 billion budgeted in 2025, reflecting the company's commitment to artificial intelligence and data center development, although such high spending may raise investor concerns.
- Attractive Valuation: Despite the increased spending, Meta's forward price-to-earnings ratio stands at 24.8, suggesting that the current stock price remains appealing, and when considering the company's revenue and profit growth, investors maintain an optimistic view on holding the stock.
See More
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- Fast-Track Entry Rule: Nasdaq is considering changes to its Nasdaq 100 methodology, potentially introducing a 'fast entry' rule that would allow the top 40 companies by market cap to join the index after just 15 trading days, significantly shortening the time for newly public companies to enter major indexes.
- Merger Boosts Valuation: The recent merger between SpaceX and xAI has elevated SpaceX's valuation to approximately $1 trillion, while xAI is valued at $250 billion, with the combined entity expected to price shares around $527, which is likely to attract more investor interest.
- Industry Implications: SpaceX's initiative may set a precedent for other highly valued private firms, driving policy changes for faster index inclusion across the industry, further accelerating liquidity in capital markets and boosting investor confidence.
See More
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- Earnings Beat: Meta's Q4 2025 earnings report exceeded consensus by approximately $1.3 billion, with a 24% year-over-year increase in advertising revenue, demonstrating the effectiveness of AI investments and boosting market confidence in future growth.
- Capex Plans: CEO Zuckerberg announced plans to increase AI-related capital expenditures to between $115 billion and $135 billion in 2025, surpassing Wall Street's expectation of nearly $111 billion, indicating strong confidence in AI infrastructure.
- Return on Tech Investment: By doubling the number of GPUs used for training its ad ranking model, Meta has enhanced its ad targeting capabilities, which is expected to further drive ad revenue growth, particularly as its video generation tools achieve a $10 billion annual revenue run rate, growing three times faster than the overall ad business.
- Risk Warning: While the market is optimistic about Meta's AI spending, investors should remain cautious of Zuckerberg's history of overextending into other technologies, especially given Reality Labs' cumulative losses exceeding $80 billion, ensuring that AI investments continue to yield returns.
See More
Meta and Zelestra Expand Clean Energy Partnership with New PPA
- Project Launch: The Jasper County Solar project in Indiana has achieved full commercial operations, marking the first project to come online in the partnership between Meta and Zelestra, which is expected to provide significant clean energy supply to the region.
- New Agreement Signed: The companies have signed a long-term Power Purchase Agreement (PPA) for the 176 MWdc Skull Creek Solar Plant in Texas, further advancing Meta's renewable energy initiatives in the state and supporting its goal of 100% clean energy operations.
- Capacity Expansion: Meta and Zelestra now have approximately 1.2 GWdc of solar capacity across seven projects in the US, all scheduled to be operational by 2028, significantly enhancing their competitive position in the renewable energy market.
- Future Construction Plans: With the upcoming construction of two new projects, Zelestra is advancing its position in the US energy landscape, expected to provide innovative solutions to meet the evolving needs of large corporate partners in renewable energy.
See More
Meta Platforms Reports Strong Q4 2025 Earnings Growth
- Significant Revenue Growth: Meta reported a 24% revenue increase in Q4 2025, surpassing analyst expectations, which underscores the company's robust performance in the social media sector and further solidifies its market position.
- Substantial Capital Expenditure Increase: The company plans to allocate between $115 billion and $135 billion for capital expenditures in 2026, representing a 74% increase from the $72 billion budgeted in 2025, demonstrating a strong commitment to future technology investments, particularly in artificial intelligence.
- Strong Stock Performance: Meta's stock has surged 387% over the past three years, and despite significant declines in 2018 and 2022, the current valuation remains attractive to investors, with a forward price-to-earnings ratio of 24.8, indicating market confidence in its future growth.
- AI Investment Strategy: Founder and CEO Mark Zuckerberg emphasized that Meta is fully committed to building data centers and developing a large language model called Avocado, aiming to achieve the vision of personal superintelligence, which could drive higher growth potential for the company in the future.
See More
Meta and Alphabet Capital Expenditure Comparison
- Capital Expenditure Expectations: Alphabet's earnings report indicates a projected capital expenditure of $175 billion to $185 billion for 2026, significantly exceeding the previous estimate of $119.5 billion and nearly doubling last year's investment, reflecting its ambition in AI infrastructure.
- Meta's Capital Spending Guidance: Meta anticipates capital expenditures between $115 billion and $135 billion for 2026, which, while lower than Alphabet's forecast, underscores the company's focus on AI, with CEO Mark Zuckerberg stating that AI will profoundly change operations.
- Market Sentiment Shift: Meta's stock dipped 0.1% in pre-market trading on Thursday, with retail message volume increasing by 42% in 24 hours; however, sentiment shifted from 'bullish' to 'bearish', indicating investor concerns about the company's future prospects.
- AI as a Growth Engine: Zuckerberg emphasized during the earnings call that Meta is positioning AI as a core growth engine, planning significant investments and innovations in 2026 to enhance product quality and internal efficiency, despite a 5% decline in META stock over the past 12 months.
See More
Meta Platforms Reports 24% Revenue Growth in Q4 2025
- Significant Revenue Growth: Meta Platforms reported a 24% revenue increase in Q4 2025, surpassing analyst expectations, which highlights the company's robust performance in the social media sector and boosts investor confidence.
- Strong Stock Performance: Over the past three years, Meta's stock has surged by 387%, and despite historical volatility, the current growth trend indicates a positive market outlook for its future.
- Surging Capital Expenditures: Meta plans to allocate between $115 billion and $135 billion in capital expenditures for 2026, representing a 74% increase from the $72 billion budgeted in 2025, reflecting the company's commitment to artificial intelligence and data center development, although such high spending may raise investor concerns.
- Attractive Valuation: Despite the increased spending, Meta's forward price-to-earnings ratio stands at 24.8, suggesting that the current stock price remains appealing, and when considering the company's revenue and profit growth, investors maintain an optimistic view on holding the stock.
See More
SpaceX Seeks Early Inclusion in Major Stock Indexes
- Early Index Inclusion: SpaceX is engaging with major index providers like Nasdaq to discuss the possibility of early inclusion in stock indexes, aiming to bypass traditional IPO rules to provide liquidity to shareholders sooner, thereby enhancing the company's appeal in capital markets.
- Fast-Track Entry Rule: Nasdaq is considering changes to its Nasdaq 100 methodology, potentially introducing a 'fast entry' rule that would allow the top 40 companies by market cap to join the index after just 15 trading days, significantly shortening the time for newly public companies to enter major indexes.
- Merger Boosts Valuation: The recent merger between SpaceX and xAI has elevated SpaceX's valuation to approximately $1 trillion, while xAI is valued at $250 billion, with the combined entity expected to price shares around $527, which is likely to attract more investor interest.
- Industry Implications: SpaceX's initiative may set a precedent for other highly valued private firms, driving policy changes for faster index inclusion across the industry, further accelerating liquidity in capital markets and boosting investor confidence.
See More
