From Nasdaq: 2025-06-17 12:08:00

Meta Platforms is expanding its offerings on WhatsApp, reaching 1.5 billion users globally with channel subscriptions and ads in Status. Despite privacy concerns, META aims to use limited data for ad targeting. In Q1 2025, 97.8% of revenue came from ads, driven by AI innovations like Andromeda from NVIDIA.

The launch of Generative Ads Recommendation model and AI creative tools boosted conversion rates and user engagement on Facebook, Instagram, and Threads. META’s social commerce growth through WhatsApp and Facebook contributed to a 34% revenue increase in Q1 2025. Revenues are expected to grow 11.8% in 2025.

META faces competition from Alphabet and Amazon for ad dollars, with an expected 50% share of global ad spending by 2028. Alphabet’s AI focus and Amazon’s AWS services strengthen their market positions. META’s stock has appreciated 19.9% YTD but trades at a premium with a Value Score of D.

The Zacks Consensus Estimate predicts a 11.43% YOY growth in META’s earnings for Q2 2025. The stock carries a Zacks Rank #3 (Hold) with a forward 12-month Price/Sales ratio of 8.98X. Estimates show a 5.36% YOY growth in earnings for 2025. Consider 7 elite Zacks Rank #1 Strong Buys for potential early price pops.



Read more at Nasdaq: Meta Platforms Adds Ads in WhatsApp: Is it the Next Revenue Pillar?