Meta Q1 2025 earnings preview: focus on advertising, AI, and user trends
Meta's first quarter 2025 earnings release is anticipated to highlight significant growth, supported by a strategic focus on advertising and artificial intelligence.
When is Meta reporting?
Meta Platforms is set to report its first quarter (Q1) 2025 earnings after the market closes on Thursday, 30 January at 5.05am SGT.
The trading signals show increased activity ahead of the results, with investors focused on advertising growth and artificial intelligence (AI) developments.
Meta Q1 2025 earnings expectations
- Revenue: $36.2 billion
- Revenue growth: 18 % year-over-year (YoY)
- Earnings per share (EPS): $4.65, up 35% YoY
These projections reflect continued strength in Meta's core advertising business, despite broader economic uncertainties. The company's renewed focus on efficiency has helped boost profit margins.
Meta's ability to monetise Instagram Reels and maintain engagement across its platforms will be crucial metrics for investors to monitor.
Recent performance and market sentiment
In 2025, Meta shares have outperformed the broader tech sector, rising 25% year-to-date, making the stock a favourite among growth investors.
Revenue growth has been driven by strong advertising demand and AI integration across Meta's platforms. Cost-cutting measures from 2024 continue to enhance margins.
Investors using our IG trading platform have shown increased interest in Meta ahead of earnings, with a prevailing bullish sentiment.
Meta's investments in AI and machine learning have enhanced ad targeting capabilities, maintaining a competitive edge over rivals like TikTok.
What to watch for
- Daily active users: across Meta's family of apps remain a vital metric. Analysts anticipate Facebook will reach 2.2 billion daily users in Q1
- The algorithmic trading community: will monitor any user engagement trend changes that could impact automated strategies
- Meta's Reality Labs division: which is responsible for metaverse development, is expected to post another quarterly loss, though investor focus remains on AI progress
- Guidance from management: for second quarter (Q2) and full-year 2025 will be crucial, given economic uncertainties and potential regulatory challenges.
Analyst recommendations
Current broker consensus is strongly bullish, with 45 'buy' ratings, 8 'holds', and 2 'sells'. The median price target is set at $580.00.
Recent price target increases reflect growing confidence in Meta's performance and market share gains in digital advertising.
While concerns about regulatory risks and competition persist, most analysts believe Meta's strong fundamentals outweigh these issues.
Meta technical analysis
Meta’s share price has reached a new record high after steady gains over the past year.
The upward trend remains solid, with consistent higher highs and higher lows throughout the year. Notably, the price has stayed above the 200-day simple moving average (SMA) since early 2023.
Meta daily chart
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