Is Meta Stock a Buy, Hold or Sell After Earnings?
Meta stock is gaining ground Thursday after the social media giant reported strong earnings, but what does Wall Street have to say? We take a look here.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
Meta Platforms (META) stock rose out of the gate Thursday after the parent company of Facebook and Instagram beat top- and bottom-line expectations for its fourth quarter.
In the three months ending December 31, Meta's revenue increased 20.6% year over year to $48.4 billion, boosted by a 5% rise in its family daily active people (DAP) to 3.35 billion. Its earnings per share (EPS) were up 50.5% from the year-ago period to $8.02.
"We continue to make good progress on AI [artificial intelligence], glasses, and the future of social media," said Meta Platforms CEO Mark Zuckerberg in a statement. "I'm excited to see these efforts scale further in 2025."
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results beat analysts' expectations. Wall Street was anticipating revenue of $47 billion, earnings of $6.77 per share and daily active people of 3.32 billion, according to CNBC.
For its first quarter, Meta said it expects to achieve revenue between $39.5 billion to $41.8 billion. The midpoint of this range, $40.65 billion, came in below analysts' expectations for revenue of $41.7 billion, but Meta added that its outlook assumes a 3% headwind related to foreign currency translation.
"Meta is suffering from challenging macroeconomic conditions that are negatively impacting its advertising spending," says Brian Mulberry, client portfolio manager at Zacks Investment Management. The company is also facing "unfavorable forex, targeting and measurement headwinds due to Apple's (AAPL) iOS changes, normalization of e-commerce after the pandemic peak and higher inflation," he adds.
Nevertheless, Zuckerberg says that "this is going to be a really big year" for Meta and that "the trajectory for most of our long-term initiatives" will be "a lot clearer by the end of this year."
As for spending levels, which Wall Street is keeping a close eye on, Meta said it expects total expenses in 2025 to be in the range of $114 billion to $119 billion, with infrastructure believed to be the "single largest driver of expense growth."
Meta pays Trump
In separate news, media reports indicate Meta Platforms agreed to pay $25 million to settle a lawsuit brought against the company by President Donald Trump after his accounts were suspended in 2021 following the January 6 attack on the U.S. Capitol.
According to The Wall Street Journal, $22 million will go toward building Trump's presidential library with the remainder used to pay legal fees and plaintiffs.
Is META stock a buy, sell or hold?
Meta Platforms has been a powerhouse on the price charts over the past 12 months, up 69% on a total return basis (price change plus dividends) vs the S&P 500's 24% gain. Unsurprisingly, Wall Street is very bullish on the Magnificent 7 stock.
According to S&P Global Market Intelligence, the average analyst target price for the large-cap stock is $717.79, representing implied upside of more than 6% to its January 29 close. Additionally, the consensus recommendation is Strong Buy.
Financial services firm Wedbush maintained its Outperform rating (equivalent to a Buy) after Wednesday night's earnings release and raised its price target to $770 from $700.
"Meta reported strong fourth-quarter results with revenue roughly 3% ahead of the Street and operating income around 17% above consensus," says Wedbush analyst Scott Devitt. "First-quarter revenue guidance was in line with consensus on an forex-neutral basis, and we expect investors will look past near-term forex headwinds as the company continues to deliver improvements in user engagement and monetization."
Related Content
-
Ask the Tax Editor: Federal Income Tax DeductionsAsk the Editor In this week's Ask the Editor Q&A, Joy Taylor answers questions on federal income tax deductions
-
States With No-Fault Car Insurance Laws (and How No-Fault Car Insurance Works)A breakdown of the confusing rules around no-fault car insurance in every state where it exists.
-
7 Frugal Habits to Keep Even When You're RichSome frugal habits are worth it, no matter what tax bracket you're in.
-
The Best Precious Metals ETFs to Buy in 2026Precious metals ETFs provide a hedge against monetary debasement and exposure to industrial-related tailwinds from emerging markets.
-
For the 2% Club, the Guardrails Approach and the 4% Rule Do Not Work: Here's What Works InsteadFor retirees with a pension, traditional withdrawal rules could be too restrictive. You need a tailored income plan that is much more flexible and realistic.
-
Retiring Next Year? Now Is the Time to Start Designing What Your Retirement Will Look LikeThis is when you should be shifting your focus from growing your portfolio to designing an income and tax strategy that aligns your resources with your purpose.
-
I'm a Financial Planner: This Layered Approach for Your Retirement Money Can Help Lower Your StressTo be confident about retirement, consider building a safety net by dividing assets into distinct layers and establishing a regular review process. Here's how.
-
Stocks Sink With Alphabet, Bitcoin: Stock Market TodayA dismal round of jobs data did little to lift sentiment on Thursday.
-
The 4 Estate Planning Documents Every High-Net-Worth Family Needs (Not Just a Will)The key to successful estate planning for HNW families isn't just drafting these four documents, but ensuring they're current and immediately accessible.
-
Love and Legacy: What Couples Rarely Talk About (But Should)Couples who talk openly about finances, including estate planning, are more likely to head into retirement joyfully. How can you get the conversation going?
-
How to Get the Fair Value for Your Shares When You Are in the Minority Vote on a Sale of Substantially All Corporate AssetsWhen a sale of substantially all corporate assets is approved by majority vote, shareholders on the losing side of the vote should understand their rights.
