From Nasdaq: 2025-04-28 12:03:00

Meta Platforms is set to report its first-quarter 2025 results on April 30, with total revenues expected between $39.5 billion and $41.8 billion, indicating 8-15% year-over-year growth. The Zacks Consensus Estimate for first-quarter revenues is $41.22 billion, and earnings are expected at $5.21 per share, a 10.62% increase from last year.

Meta Platforms’ earnings have consistently beaten estimates in the past, with an average surprise of 13.77%. The company’s strong advertising revenue growth prospects, with a projected increase of 13.5% year-over-year, are expected to drive its first-quarter results. META’s AI-driven offerings reach over three billion people daily, making it a key player in the digital ad sales market.

META has been leveraging AI and machine learning to enhance its social media platforms, but rising expenses for AI investments may impact margins. The company’s Reality Labs business is burning cash, affecting its first-quarter results. Despite outperforming the sector, META shares have declined 6.6% year-to-date, with a stretched valuation at 7.23X forward Price/Sales.

AI-driven growth prospects are a key factor for META’s near-term and long-term success. The company’s use of AI has enhanced its platform offerings, attracting advertisers and boosting engagement. META’s AI initiatives, like Andromeda and Advantage+, have shown positive results, contributing to its competitive edge in the digital advertising space.

META’s upcoming first-quarter results will be crucial, with the company expected to leverage its AI capabilities for growth. Despite regulatory concerns and a stretched valuation, META remains a Hold with a Zacks Rank #3. Investors should monitor the stock for potential accumulation opportunities.META’s use of AI bodes well for its near-term and long-term prospects. However, a stretched valuation and growing regulatory issues are a concern.

Meta Platforms currently has a Zacks Rank #3 (Hold), suggesting that investors should wait for a favorable point to accumulate the stock. 

Read more at Nasdaq: Buy, Sell or Hold Meta Platforms Stock? Key Tips Ahead of Q1 Earnings