Meta stock hits record peak ahead of Q4 earnings | IG Bank Switzerland
Meta just delivered its Q1 2025 earnings, and let’s just say — they didn’t disappoint.
Despite whispers of an advertising slowdown tied to global tariff concerns, Meta outpaced Wall Street expectations on both revenue and profit. Even more impressive? The tech giant gave a surprisingly strong outlook for Q2, suggesting there’s plenty of momentum ahead.
Meta’s Q1 2025: By the Numbers
Let’s break it down:
- Earnings per share (EPS): $6.43 (Wall Street expected $5.25)
- Revenue: $42.3 billion (beat the expected $41.3 billion)
- Advertising revenue: $41.39 billion (vs. $40.5 billion forecast)
- Reality Labs loss: $4.21 billion (Meta’s VR division is still in the red)
So, what does this all mean? In short — Meta’s core ad business is still firing on all cylinders.
Quick take: Meta’s strong earnings beat expectations across the board, signaling resilience in its ad model despite global economic uncertainty.
What’s Driving the Growth?
Meta’s ad revenue continues to thrive, even with more than 10% of its ad base coming from China — a region seeing pullbacks due to tariffs. Investors were particularly worried this could drag performance down, but Meta proved otherwise.
Plus, even with regulatory headwinds, the company is doubling down on its future. Meta increased its 2025 capital expenditure guidance to $64–$72 billion, up from its earlier estimate of $60–$65 billion. That signals big investments in AI, infrastructure, and maybe even a more aggressive push into the metaverse.
The FTC Battle in the Background
While the numbers are solid, Meta isn’t out of the woods. The company is currently facing off with the Federal Trade Commission (FTC), which is trying to force it to divest Instagram and WhatsApp. The FTC claims Meta’s acquisitions were part of a “buy-or-bury” strategy aimed at stifling competition.
Still, the legal drama didn’t spook investors much — Meta’s stock jumped more than 4% in after-hours trading following the earnings release.
What Does This Mean for You?
If you’re an investor, Meta’s results offer reassurance. The company continues to perform despite tough market conditions. If you’re in digital marketing, Meta’s ad engine looks as strong as ever, even amid global shifts.
And for everyone else? Expect to see Meta invest even more in AI and immersive technologies in the months ahead — which could mean big leaps in how we interact with platforms like Instagram, Facebook, and the upcoming Quest VR experiences.
Main points
- Meta beat Q1 2025 earnings estimates with $6.43 EPS on $42.3B revenue
- Advertising revenue hit $41.39B despite tariff concerns
- Meta raised 2025 capex to $64B–$72B
- Stock rose 4% after-hours
- Ongoing FTC antitrust case looms over Instagram and WhatsApp
Final Thought
Meta is showing that it’s not just surviving — it’s adapting and thriving. With smart bets on AI and a strong ad core, it’s positioning itself to stay a tech heavyweight in the years to come. The road ahead may not be smooth, especially with regulators watching closely, but for now, Meta is steering full speed ahead.
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