Meta Earnings: AI Push, Tariff Impact, & Ad Revenue Are In Focus
A photograph taken during the World Economic Forum (WEF) annual meeting in Davos on January 19, ... More 2025, shows the logo of Meta, the US company that owns and operates Facebook, Instagram, Threads, and WhatsApp. (Photo by Fabrice COFFRINI / AFP) (Photo by FABRICE COFFRINI/AFP via Getty Images)
Meta Platforms scheduled to report earnings after Wednesday's close. The stock recently hit a record high near $740.91/share and is currently trading near $554. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
The company is expected to report a gain of $5.22/share on $41.27 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $5.40/share. The Whisper number is the Street's unofficial view on earnings.
The company has grown its earnings nicely over the last several years. In 2020 the company earned $9.78, in 2021 the company earned $13.77. In 2022, earnings fell to $8.59. Then, in 2023 earnings soared to $15.56. in 2024, earnings jumped to $23.86 and are expected to grow to $24.58 in 2025. In 2026, earnings are expected to grow again to $27.89. Meanwhile, the stock sports a price to earnings ratio of 23 which is near the S&P 500.
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Technically, the stock is in a multi-month downtrend and trading below its important moving averages. Near term resistance is the 200 DMA line and then the 50 DMA line. On the downside, near-term support is 493-500. That said, the stock can easily gap up and that's what the bulls want to see after earnings are announced. Conversely, the bears want to see it gap down and fall.
Meta Platforms, Inc. engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide. It operates in two segments, Family of Apps and Reality Labs.
The Family of Apps segment offers Facebook, which enables people to share, discuss, discover, and connect with interests; Instagram, a community for sharing photos, videos, and private messages, as well as feed, stories, reels, video, live, and shops; Messenger, a messaging application for people to connect with friends, family, communities, and businesses across platforms and devices through text, audio, and video calls; and WhatsApp, a messaging application that is used by people and businesses to communicate and transact privately.
The Reality Labs segment provides augmented and virtual reality related products comprising consumer hardware, software, and content that help people feel connected, anytime, and anywhere.
The company was formerly known as Facebook, Inc. and changed its name to Meta Platforms, Inc. in October 2021. The company was incorporated in 2004 and is headquartered in Menlo Park, California
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclosure: The stock has been featured on FindLeadingStocks.com
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