Meta Platforms Reports 26% Revenue Growth in 2025, AI Investments Raise Market Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 13h ago
0mins
Source: Fool
- Strong Advertising Business: Meta's overall revenue rose by 26% in 2025, with advertising revenue reaching $50 billion, accounting for 98% of total revenue, showcasing the robust potential of its advertising business enhanced by AI integration, thereby solidifying its market leadership.
- Increased User Engagement: The implementation of generative AI has led to a 5% increase in user time spent on Facebook and a 10% increase on Threads, which not only boosts ad exposure but also potentially drives future revenue growth.
- Surge in Capital Expenditures: Meta expects capital expenditures to reach $70 billion to $72 billion in 2025, a $30 billion increase from 2024, with projections for 2026 exceeding $100 billion, raising concerns in the market regarding its financial health.
- Cash Flow Pressure: Despite generating nearly $110 billion in cash from operations over the past 12 months, most of this cash flow will be devoted to building AI infrastructure, which may impact its short-term financial performance, leading to negative market reactions.
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: 646.060
Low
655.15
Averages
832.06
High
1117
Current: 646.060
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.
