Meta Platforms (META) Is About to Report Q1 Earnings Today. Here Is What to Expect
Social media company Meta Platforms (META) will report its Q1 2025 earnings today. META stock has declined 6% in 2025 so far due to slowing advertising revenue, regulatory challenges, increased operational costs, and broader market volatility impacting the tech sector. Wall Street analysts expect the company to post earnings of $5.24 per share, up 11.5% from the year-ago quarter.
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Meanwhile, revenues are expected to increase by 13% from the year-ago quarter to $41.34 billion, according to data from the TipRanks Forecast page. Notably, Meta has an encouraging earnings surprise history. The company missed earnings estimates just once out of the previous nine quarters.
Recent Events Ahead of Q1 Print
On April 25, Meta announced job cuts in its Reality Labs division, which is responsible for its Quest headsets and Metaverse initiatives. These layoffs are part of Meta's broader cost-cutting efforts as it aims to refocus on future technologies. According to Main Street Data, Reality Labs' operating loss widened to $4.97 billion in Q4 2024, slightly up from $4.65 billion from the year-ago quarter. Meanwhile, revenues grew modestly by 1.12% year-over-year to $1.1 billion in Q4 2024.
On April 23, the European Union (EU) imposed significant fines on U.S. tech giants Apple (AAPL) and Meta for failing to comply with its tech regulations. The European Commission fined Apple $570 million and Meta $230 million, giving them two months to meet the regulatory requirements or face further penalties.
Analyst's Views Ahead of META's Q1 Earnings
Ahead of Meta Platforms' Q1 print, five-star analyst Rob Sanderson of Loop Capital Markets reduced his price target to $695 from $900 but kept a Buy rating on the stock. He expects solid Q1 results but a weaker outlook ahead due to lower ad pricing. He noted that ad prices are dropping as Chinese advertisers scale back due to new tariffs and rules.
As a result, the analyst forecasts that Meta's Q2 revenue guidance will be lower than expected, around $40.5B to $43.0B, compared to the $43.9B consensus. However, he sees Meta as a solid growth opportunity for long-term investors despite tough market conditions.
Options Traders Anticipate a Large Move
TipRanks' Options tool offers a quick way to gauge what options traders anticipate from the stock following its earnings report. The expected earnings move is calculated using the at-the-money straddle of the options set to expire closest to the announcement. While this may sound complex, the tool handles the calculations for you.
Currently, it indicates that options traders are predicting a 8.13% swing in either direction.
Is META a Good Stock to Buy Now?
Overall, META stock has a consensus Strong Buy rating among 47 Wall Street analysts on TipRanks. That rating is based on 43 Buys, three Holds, and one Sell assigned in the last three months. The average META price target of $703.40 implies a 27.95% upside from current levels.
See more META analyst ratings
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