Overview
- Meta beat estimates with $51.24 billion in revenue and $7.25 EPS, and guided 2025 capital expenditures to $70–72 billion, higher than prior plans.
- Bloomberg has reported planned deep cuts at Reality Labs with a shift toward AI and wearable AI after roughly $73 billion in cumulative losses.
- Baird’s Colin Sebastian reiterated a Buy rating while trimming his price target to $815, and Wedbush kept Outperform with a reduced $880 target.
- Analysts flag catalysts such as the next Llama model, Meta AI updates, Advantage+ ad performance gains, plus monetization across WhatsApp, Messenger and Threads.
- Coverage notes improving ad engagement tied to AI, a 3.5 billion‑user reach, ongoing dividend payouts, and a record of sharp stock swings that heightens execution risk.