​Meta earnings preview: what to expect from the tech giant's Q1 results

Key expectations for Meta's Q1 results

Meta is expected to report earnings per share (EPS) of $4.65, representing a 35% increase year-over-year (YoY). Wall Street forecasts revenue of $36.2 billion, up 18% from quarter one (Q1) 2024.

The trading signals show increased activity ahead of the results, with investors focused on advertising growth and artificial intelligence (AI) developments.

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

Meta shares have outperformed the broader tech sector in 2025, rising 25% year-to-date. The stock remains a favourite among growth investors.

Strong advertising demand and AI integration across Meta's platforms have driven revenue growth. Cost-cutting measures implemented in 2024 continue to benefit margins.

Investors using our trading platform have shown increased interest in Meta ahead of earnings, with bullish sentiment prevailing.

The company's investments in AI and machine learning have improved ad targeting capabilities, helping maintain its competitive edge against rivals like TikTok.

Key areas to watch

Daily active users across Meta's family of apps remain a crucial metric. Analysts expect Facebook to reach 2.2 billion daily users in Q1.

The algorithmic trading community will be watching for any changes in user engagement trends that could affect automated strategies.

Meta's Reality Labs division, responsible for metaverse development, is forecast to post another quarterly loss. However, investors are more focused on AI progress.

Management guidance for quarter two (Q2) and full-year 2025 will be particularly important given economic uncertainties and potential regulatory challenges.

Analyst recommendations

Current broker consensus shows strong bullish sentiment, with 45 'buy' ratings, 8 'holds' and 2 'sells'. The median price target sits at $580.00.

Those interested in share dealing should note that analysts cite Meta's dominant market position and AI integration as key growth drivers.

Recent price target increases reflect growing confidence in Meta's execution and market share gains in digital advertising.

Concerns around regulatory risks and competition remain, but most analysts believe these are outweighed by Meta's strong fundamentals.

Meta share price – technical analysis

Meta’s stock price has surged to a new record high, having seen steady gains over the past year.

The solid uptrend remains in place, with higher highs and higher lows seen over the last year. Notably the price has held above the 200-day simple moving average (SMA) since early 2023.

Meta chart

How to trade Meta earnings

Meta's share price typically sees increased volatility around earnings releases. The options market implies a 7% move following results.

Traders should consider using stop losses and position sizing appropriate for earnings-related volatility. Past results have seen significant price swings.

Demo account users can practice earnings-related trading strategies without risking real capital.

Remember that extended hours trading around earnings can see wider spreads and increased volatility.

How to trade Meta's earnings:

1. Research Meta's recent performance and market expectations

2. Choose whether you want to trade or invest

3. Open an account with IG

4. Select your position size and risk management strategy

5. Place your trade ahead of or after the earnings release