META Earnings Prediction
The chart below shows how META performed 10 days before and after its earnings report, based on data from the past quarters. Typically, META sees a -1.63% change in stock price 10 days leading up to the earnings, and a +7.84% change 10 days following the report. On the earnings day itself, the stock moves by +0.46%. This data can give you a slight idea of what to expect for the next quarter's release.
META Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
48.38B
20.63%
19.21%
Gross Margin
81.75%
0.86%
-0.10%
Operating Margin
48.48%
10.91%
13.35%
Net Margin
43.07%
18.39%
11.44%
EPS
7.98
50.57%
32.34%
No Data Available
META Earnings Analysis
Meta Platforms Inc Corporation (META.O) Earnings Conference Call
Positive
Strong Revenue Performance: Q4 total revenue was $48.4 billion, up 21% year over year, indicating strong financial performance.
Strong Q4 Operating Income: Operating income for Q4 was $23.4 billion, representing a robust 48% operating margin, showcasing effective cost management.
Family of Apps Revenue Growth: Family of Apps revenue reached $47.3 billion in Q4, also up 21% year over year, driven by strong ad revenue growth.
Meta AI User Growth: Meta AI usage has scaled to over 700 million monthly active users, reflecting significant customer growth and engagement.
Dividend Payout Commitment: The company paid $1.3 billion in dividends to shareholders, demonstrating a commitment to returning capital to investors.
Negative
Rising Operational Costs: Q4 total expenses increased by 5% to $25 billion, despite a favorable impact from legal accrual reductions, indicating rising operational costs.
Reality Labs Operating Loss: Reality Labs segment reported a $5 billion operating loss in Q4, highlighting ongoing challenges in monetizing this segment despite a slight revenue increase.
R&D Compensation Increase: Employee compensation costs in R&D rose by 16%, contributing to overall expense growth and indicating pressure on profitability due to higher labor costs.
Projected Expense Growth: The projected total expenses for 2025 are expected to range between $114 billion and $119 billion, driven primarily by infrastructure costs and employee compensation, suggesting significant financial strain ahead.
Projected Capital Expenditures 2025: The anticipated capital expenditures for 2025 are projected to be between $60 billion and $65 billion, indicating a continued high level of investment without immediate returns, which could impact cash flow.
META FAQs
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META Earning Call Sentiment
Earnings call transcript: Meta Platforms beats Q4 2024 forecasts, stock rises
META.O
-0.35%Positive
The earnings call highlights strong financial performance with a 48% operating margin and significant ad revenue growth. Despite increased Reality Labs losses, optimistic guidance and strategic investments in AI and infrastructure bolster positive sentiment. The Q&A reveals management's focus on AI development and monetization, though some responses were unclear. NULLtheless, the overall positive trajectory in financials and strategic initiatives, along with increased dividends, suggests a likely positive stock price movement.
