With its impressive fourth-quarter earnings report, Meta Platforms managed to shake off some concerns about its artificial-intelligence strategy.
Meta Platforms Inc.'s better-than-expected sales outlook helped ease Wall Street concerns about plans for unprecedented spending on artificial intelligence this year. The social networking giant topped projections for holiday quarter revenue and gave a strong forecast for the current period during its earnings report on Jan. 28.
Meta stock has declined 1% in the last year, according to CNBC, with a 10% pop in pre-market trading after a fourth quarter earnings report that beat expectations and raised guidance.
Meta Platforms has reported its Q4 2025 results, and the figures are remarkable. However, as the stock fluctuates, investors are wondering: Is Mark Zuckerberg constructing a gold mine or a financial sinkhole?
Last year, one of the better performers among the Magnificent 7 was Meta Platforms Inc.
Meta Platforms delivered a blowout Q4, surpassing earnings and revenue estimates on robust holiday-driven ad demand. META maintains exceptional free cash flow, even amid aggressive CapEx, fueling AI investments and strategic acquisitions. Shares remain attractively valued at 20.2X FY 2027 P/E, below big tech rivals, with a fair value target of $826 based on an industry-like 25X P/E.
The stock of the technology giant Meta (NASDAQ: META) soared in the extended session between January 28 and January 29. Specifically, the equity rallied 8.06% from its Wednesday closing price of $668.73 to $722.60 in the early morning of Thursday.
Just hours before its after-the-bell Q4 earnings call Wednesday (Jan. 28), it was common to see a headline calling for Meta to defend and maybe even trim its artificial intelligence (AI) spending. “Meta to Report Q4 Earnings Amid AI Spending Concerns” was typical.
Meta Platforms, Inc. (META) Q4 2025 Earnings Call Transcript
The Big Tech earnings reporting season kicked off this afternoon with Meta, Microsoft and Tesla releasing quarterly results after the closing bell. Follow our live coverage here.
Meta Platforms, Inc.'s core ad business continues to compound at scale, delivering 24% revenue growth and 41% operating margins even in a peak investment year. AI is already improving monetization and efficiency, lifting ad pricing, engagement, and employee productivity without requiring new revenue streams. Strong cash generation allows Meta to fund AI internally while buying back shares, avoiding the debt and dilution risk seen across much of the AI trade.
Earlier this month, Meta laid off 10% of the staff for Reality Labs, its virtual reality unit, reportedly cutting as many as 1,000 employees. Now, in a development that seems directly related, the company has revealed that the unit lost many billions of dollars last year.