Overview
- Wall Street expects another strong ad quarter, with Morgan Stanley and BofA reiterating bullish calls and $850 and $900 targets as Meta reports on Oct. 29.
- Shares have cooled after hitting record highs, and analysts frame the pullback as an entry point given improving ad targeting and engagement metrics.
- Recent results highlight strength: revenue rose about 19% year over year to roughly $170 billion LTM, the latest quarter reached $42 billion, and operating margin was about 42.9%.
- Meta’s 2025 outlays remain hefty, with projected AI-focused capex of $66–72 billion contributing to an estimated total expense load of $114–118 billion and pressuring margins.
- Material overhangs persist, including the FTC antitrust trial that could seek Instagram or WhatsApp divestitures, an EU €200 million DMA fine with possible daily penalties, and deep Reality Labs losses ($4.53 billion in Q2; over $50 billion since 2019).