When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Meta Platforms (META) is at a 52-week high, but can investors hope for more gains in the future? We take a look at the company's fundamentals for clues.
META's Q2 beat eases AI monetization worries as ad revenues surge, user growth stays strong, and 2025 outlook improves.
AI investments are already delivering results, with increased time spent on platforms and higher ad prices, positioning META for superior incremental growth vs. Google. Cost discipline remains intact, and while depreciation will rise with higher capex, returns on investment are robust, supporting faster compounding in absolute dollars. Despite recent gains, META's valuation remains attractive relative to growth and the S&P 500, offering continued opportunity for outsized returns with manageable risks.
Meta delivered a standout Q2 with 22% YoY revenue growth, beating forecasts despite tariff concerns and advertiser fickleness. Ad system innovations—Andrometa, GEM, and Lattice—drove higher conversion rates, fueling a 9% increase in average ad prices. WhatsApp and Threads monetization is gaining traction, with WhatsApp's paid messaging and Meta Verified subscriptions driving strong 'Other Revenue' growth.
Although the revenue and EPS for Meta Platforms (META) give a sense of how its business performed in the quarter ended June 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Shares of Meta Platforms (META 11.05%) are flying higher on Thursday, up 12.2% as of 2:53 p.m. ET. Today's jump comes as the S&P 500 was flat and the Nasdaq Composite gained 0.3%.
META's second-quarter 2025 performance benefits from higher advertising revenues, expanding AI integration and a strong user base.
CEO Mark Zuckerberg wants to make “personal superintelligence” available to everyone.
Magnificent Seven stock Meta Platforms NASDAQ: META just reported its much-anticipated Q2 financial results. In no uncertain terms, Meta absolutely smashed expectations.
I don't expect to see Meta Platforms, Inc. trading below $750 anytime soon. Any pullback to this level could be a decent entry point for institutional funds that are uninvested. Meta's growth is relentless. Q2 DAUs hit 3.4 billion, and the family of apps' ad revenue is up 21% YOY, driven by improvements in AI recommendation algorithms. Meta raised FY 2025 CapEx lower range by $2B to $66B. The midpoint of the guidance represents a $30B YOY increase. The AI narrative remains intact.
Meta Platforms, Inc. crushed its Q2 earnings, and what it said about AI might matter even more than the revenue headline. The company's AI capex plan isn't just ambitious — it's a bet that could redefine how personal tech works. User engagement and ad revenue are both climbing fast. Coincidence? Or is Meta quietly winning the AI monetization game?