Meta Platforms (NASDAQ:META) is one of the top-performing Magnificent 7 stocks in 2025 and could highlight its AI investments when the company reports second-quarter financial results after market close Wednesday.
Here are the earnings estimates, what experts are saying ahead of the report, and key items to watch.
Earnings Estimates: Analysts expect Meta Platforms to report second-quarter revenue of $44.6 billion, up from $39.1 billion in last year's second quarter, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in 11 straight quarters.
Analysts expect the company to report second-quarter earnings per share of $5.86, up from $5.16 in last year's second quarter. The company has beaten analyst estimates for earnings per share in nine straight quarters.
Meta's guidance calls for second-quarter revenue to be in a range of $42.5 billion to $45.5 billion.
What Experts are Saying: Freedom Capital Markets Chief Global Strategist Jay Woods said Meta stock has had mild reactions after the last four quarterly reports, with three rallies and one sell-off, each move being 5% or less.
Woods said the implied volatility for the current earnings day is a move of +/- 7.4%.
As for what investors are watching in the current earnings report, Woods highlights two key areas.
"How is ad growth adding to its bottom line? What is the future CapEx spend looking like and has their AI spend started to see a return on its investment?" Woods asks.
The market expert said Ad growth and AI spending will be the keys to watch.
Bank of America Securities analyst Justin Post highlighted Meta's aggressive AI spending and investments on grabbing top AI talent from other companies as an item to watch in the company's quarterly expenses.
The analyst reiterated a Buy rating and $775 price target ahead of the report.
Post said items to watch include the company's investment in Scale AI and the formation of the company's Super Intelligence team.
The analyst expects Meta to report strong guidance with AI-driven improvements helping ad revenue along with increased monetization for Threads, WhatsApp and messaging.
Key Items to Watch: A report in July highlighted Meta's Threads platform growing to more than 350 million registered users and having 115.1 million daily active users on the mobile app.
The latest mobile daily active user numbers put Threads close to the same total as rival X, although Threads significantly trails X in web traffic.
Threads could be the next platform for Meta to focus on monetization with its growing user base and metrics.
In the first quarter, Meta Platforms saw its family daily active people total up 6% year-over-year to 3.43 billion.
The company reported a 5% year-over-year increase in the number of ad impressions and a 10% year-over-year increase in the average price per ad. Investors and analysts will be closely watching these metrics.
Meta CEO Mark Zuckerberg called the first quarter "a strong start to an important year." Zuckerberg said Meta AI had around 1 billion monthly active users at the time.
Investors and analysts will be looking for updates on important milestones like this as the company spends more on AI.
META Price Action: Meta stock is down 0.9% to $710.87 on Tuesday versus a 52-week trading range of $450.80 to $747.90. Meta stock is up 18.6% year-to-date in 2025.
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