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 -1.97% change in stock price 10 days leading up to the earnings, and a +9.00% change 10 days following the report. On the earnings day itself, the stock moves by +0.32%. This data can give you a slight idea of what to expect for the next quarter's release.
META Key Earning Data
META Earnings Analysis
Positive
User Base Expansion: Our community keeps growing with more than 3,400,000,000 people now using at least one of our apps each day.
Q1 Revenue Increase: Q1 total revenue was $42,300,000,000 up 16% or 19% on a constant currency basis.
Ads Recommendation Model Success: In just the last quarter, we are testing a new ads recommendation model for Reels, which has already increased conversion rates by 5%.
Recommendation System Enhancements: Improvements to our recommendation systems have led to a 7% increase in time spent on Facebook, a 6% increase on Instagram, and 35% on threads.
User Growth Milestone: Threads now has more than 350,000,000 monthly actives and continues to be on track to become our next major social app.
WhatsApp User Growth: WhatsApp now has more than 3,000,000,000 monthly actives with more than a hundred million people in The US and growing quickly there.
Sales Surge for AI Glasses: Ray Ban Meta AI glasses have tripled in sales in the last year, and the people who have them are using them a lot.
Family of Apps Revenue Growth: Family of Apps revenue was $41,900,000,000 up 16% year over year, with ad revenue growth strongest in rest of world and North America at 19% and 18% respectively.
Operating Income Margin: Family of Apps operating income was $21,800,000,000 representing a 52% operating margin.
Cash Flow and Shareholder Returns: Free cash flow was $10,300,000,000, and we repurchased $13,400,000,000 of our Class A common stock and paid $1,300,000,000 in dividends to shareholders.
Negative
VR Segment Challenges: Reality Labs revenue decreased by 6% year over year, primarily due to lower Meta Quest sales, indicating challenges in the VR segment.
Reality Labs Financial Struggles: Operating loss in Reality Labs was $4.2 billion, highlighting ongoing financial struggles in this division.
Advertising Sector Challenges: Despite overall revenue growth, there was a noted weakness in the gaming and politics advertising verticals, with gaming experiencing negative year-over-year growth.
User Experience Impact: The European Commission's decision regarding the subscription for no ads model may lead to a materially worse user experience for European users and significantly impact revenue as early as Q3 2025.
E-commerce Supply Concerns: There are concerns about potential supply issues in e-commerce affecting advertising spend, particularly from Asia-based exporters, which could impact future revenue growth.
Rising Capital Expenditures: Increased capital expenditures for 2025 reflect higher costs for infrastructure hardware and uncertainty in the supply chain, which may affect future financial performance.
Revenue Performance Volatility: The company is facing a dynamic macro environment that could lead to a wider range of outcomes in revenue performance, indicating potential volatility ahead.
META FAQs
How does META typically perform around its earnings report dates?
META's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a -1.97% change leading up to the report and a +9.00% change in the 10 days following the release.
Is Meta Platforms Inc (META) Q1 2025 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
META Earning Call Sentiment
Earnings call transcript: Meta Platforms Q1 2025 beats forecasts, stock rises
META.O
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