Meta Platforms (META) is set to report 2Q25 results after the close, with its earnings call scheduled for 5:00 p.m. ET.
FactSet consensus estimates call for EPS of $6.88 and revenue of $44.8 bln, with Family Daily Active People (DAP) expected at 3.45 bln.
META is coming off a strong Q1, where revenue rose 16% yr/yr to $41.39 bln, powered by AI-driven ad tools like Llama 3 and Advantage+ that enhanced ad targeting and boosted return on ad spend. Ad impressions grew 5%, while price per ad jumped 10%.
The company previously issued Q2 revenue guidance of $42.5–$45.5 bln. To meet current expectations, META will likely need to guide for revenue of at least $46.2 bln. While the top-line outlook will get attention, updated FY25 capex guidance may carry more weight. Last quarter, META raised its capex range to $64–$72 bln (from $60–$65 bln) to support its AI buildout—data centers, compute, and product integration across Facebook, Instagram, and WhatsApp.
META’s AI push has also been bolstered by its $14.3 bln investment in a 49% stake in Scale AI (June 9) and its acquisition of Play AI (July 14), strengthening its capabilities in data labeling and generative AI. Paired with aggressive talent hiring from OpenAI and DeepMind, these moves reinforce META’s long-term AI ambitions.
On the product front, Instagram Reels engagement grew 24% yr/yr in Q1, driven by AI-based recommendations now powering 50% of posts. Reels ad conversion rose 5%, with over 1M advertisers using META’s generative tools to create 15M ads in one month leading to a 7% conversion boost.
Reality Labs remains a drag, posting a $4.21 bln operating loss in Q1, with FY25 losses projected at $15–$20 bln. Still, the segment grew 28% yr/yr in Q2 2024 on strength in Quest and Ray-Ban Meta smart glasses. Investors will be watching for signs of cost control and monetization potential in upcoming products like the Oakley Meta HSTN smart glasses.
TECHS:
Google’s recent $10 bln capex bump to $85 bln puts pressure on META to follow suit, especially with large-scale initiatives like Project Prometheus. GOOG’s recent strong Q2, with 12% growth in its Search and Other segment, suggests digital ad spending remains resilient—an encouraging sign for META.
If you liked this content please click the ❤️ below and/or share this post.
SHAMLESS PLUGS
TOTALLY FREE Trading Packet!
Click here to get my packet that shows you how I traded $600 into $100K FOR FREE.
This packet will explain to you in depth how I trade and how I manage my risk.
I am happy to share this. Just use the code KPAKFRAUD at checkout and you will get it TOTALLY FREE. You will pay absolutely nothing.
Check out the latest episodes on my YouTube above.