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Meta Platforms (META) will announce its first-quarter 2025 financial results on Wednesday, April 30. Like its large tech peers, 2025 hasn’t been kind to Meta’s stock so far, and it has struggled to maintain the momentum it carried into the new year. Macroeconomic uncertainty and the impact of new tariffs on consumer spending, e-commerce, and digital advertising have created short-term hurdles. As a result, Meta shares have tumbled nearly 26% from their 52-week high.
Another pressure point has been Meta’s aggressive push into artificial intelligence and Reality Labs. While these investments will play a key role in shaping Meta’s future, the market has been cautious about whether such massive spending will deliver meaningful returns for the company, especially amid macroeconomic uncertainty and ongoing trade disputes.
While AI has started to support Meta’s growth, investments in Reality Labs, which include its metaverse and wearables initiatives, have reduced its 2024 operating profit by $17.73 billion. Meta’s management expects its Reality Labs investments and operating losses to increase in 2025.
With these factors in play, let’s look at the Street’s projections for Meta’s Q1.
Meta: Q1 Expectations
Despite concerns, Meta’s top and bottom lines will likely improve year-over-year in Q1. Analysts forecast the social media and technology giant will report earnings of $5.21 per share for the quarter, a 10.6% increase from the $4.71 it earned during the same period last year.
Meta has a strong history of outperforming analysts’ expectations, surpassing earnings estimates in the past four quarters. In its most recent report, the company topped expectations by 20.06%.
Meta’s management has guided for first-quarter revenue to land between $39.5 billion and $41.8 billion, signaling growth of 8% to 15% year-over-year. This momentum will be driven by higher revenue from its Family of Apps, which includes popular platforms like Facebook, Instagram, and WhatsApp. A key driver behind this growth is Meta’s success in keeping users engaged across its ecosystem, which in turn boosts ad revenue.
The number of ad impressions served across Meta’s services is anticipated to climb during the quarter, and the average price per ad may also see an uptick. This improvement will reflect stronger advertiser demand, thanks to Meta’s ongoing efforts to enhance ad performance and targeting capabilities.
All signs point to another solid performance from Meta in Q1. However, macro uncertainty could impact Meta’s growth in the coming quarters.
What’s Ahead for Meta Stock?
Meta Platforms continues to demonstrate its resilience, with its core growth engines firing on all cylinders. Daily active users across its platforms are climbing steadily. Meanwhile, Meta is leveraging AI across its operations, from personalizing user experiences to supercharging ad placement and enhancing content recommendations. These efforts are translating into stronger user engagement and new monetization opportunities.
Meta AI, the company’s assistant integrated across its apps, Ray-Ban Meta AI glasses, and the web, had over 700 million monthly active users at the end of Q4 2024. Meanwhile, on Facebook and Instagram, AI-driven content recommendations have significantly lifted user engagement, with time spent on both platforms growing steadily.
Video content, in particular, is seeing explosive growth. Instagram’s video consumption is rising at a double-digit rate year-over-year, reflecting similar patterns seen on Facebook in the U.S. Meta’s pivot toward video, supported by AI, is resonating with its audience.
Advertising, Meta’s main revenue engine, is also being transformed by AI. Advanced prediction models are personalizing ads with greater accuracy, increasing ad quality and effectiveness. Moreover, its Advantage+ Creative tools are gaining traction fast, with more than 4 million advertisers using its generative AI features. As Meta expands these innovations, the company’s blend of AI expertise and platform scale continues to strengthen its investment appeal.
The Bottom Line on META Stock
Despite short-term challenges, Wall Street analysts remain optimistic about Meta Platforms’ future. META stock has a “Strong Buy” consensus rating. With an average price target of $690.87, the stock has more than 26% upside potential.
Meta’s ability to keep users engaged, its dominant position across social media and digital advertising, and its integration of AI will likely drive its share price in the long term. While the company’s hefty capital spending and losses in the Reality Labs segment have raised concerns, these investments will strengthen Meta’s competitive positioning.
