Meta’s earnings-release time is shortly after 4 p.m. ET, and its convention name with analysts will begin round 5 p.m.
Meta’s inventory was up 15% year-to-date by means of Tuesday’s shut, outpacing the S&P 500‘s 3% achieve.
CFRA Analysis: Elevated concentrate on AI
Meta has mentioned it plans greater than $60 billion in capital expenditures this 12 months.Meta
Meta seemingly introduced its plan for $60 billion of capex this 12 months to emphasise its concentrate on synthetic intelligence, CFRA Analysis mentioned.
“We predict it is smart for META to get the information out of the best way earlier than earnings on Jan. 29 and be aware the elevated concentrate on AI will seemingly translate to increased income potential over time,” Angelo Zino, senior fairness analyst at CFRA, wrote.
The agency reiterated its “Purchase” ranking on the inventory.
Jefferies: Meta is a ‘High AI decide’
Meta seems to have robust progress momentum, Jefferies mentioned in a be aware. Analysts estimated that Meta’s income will are available in round $46.5 billion over the fourth quarter, whereas first-quarter income steering might be round $41.8 billion.
“Total, we proceed to be inspired by META’s potential to maintain DD rev progress, given the mixture of upper engagement from AI investments, elevated advertiser effectivity and ramping of incremental monetization codecs (e.g. WhatsApp & Llama).”
The agency reiterated its “Purchase” ranking on the inventory and issued a value goal of $715, implying 5% upside from present ranges.
Truist Securities: ‘Key beneficiary of TikTok’s mishaps’
A few of Meta’s platforms, like Threads, may benefit from any disruption to TikTok within the US, in keeping with Truist.Jaap Arriens/NurPhoto by way of Getty Photographs
Meta will seemingly be a key beneficiary of TikTok’s challenges within the US, Truist Securities mentioned in a be aware.
In response to Sensor Tower, a social media analytics web site, Threads noticed a big uptick in person time over the fourth quarter, seemingly because of the danger of TikTok being shut down, Truist mentioned.
“We view META as a key beneficiary of TikTok’s mishaps and as one in every of our 2025 favorites,” Youssef Squali, a managing director on the agency, wrote in a be aware.
Truist reiterated its “Purchase” ranking on the inventory and value goal of $700, implying 3% upside from present ranges.
JMP: ‘AI funding cycle seems early’
Meta has mentioned it is planning greater than $60 billion in capital expenditures this 12 months and can develop its AI groups “considerably.”
The announcement is an indication that markets are nonetheless within the early levels of the AI funding cycle, which is constructive for mega-cap tech corporations, JMP analysts mentioned.
“Meta’s willingness to speculate additionally suggests to us that near-term income visibility is constructive as we imagine Meta continues to profit from its AI product initiatives,” the agency wrote in a be aware.
The agency maintained its “Market Outperform” ranking on the inventory and issued a value goal of $750, implying 10% upside from present ranges.
Financial institution of America: A slew of constructive catalysts underway
Meta has mentioned it could minimize one other 5% of its workforce this 12 months, which might enhance revenue margins, in keeping with Financial institution of America.Andrej Sokolow/image alliance by way of Getty Photographs
A bunch of tailwinds could also be constructing for Meta this 12 months, Financial institution of America mentioned.
Analysts wrote that the corporate remains to be within the early levels of monetizing its AI initiatives and integrating the tech into its messaging platforms, similar to WhatsApp and Messenger.
Meta may stand to profit from any disruption to TikTok, with some corporations doubtlessly shifting to Meta to promote.
“With a secure macro backdrop, a rising AI contribution to advert revenues, ramping messaging revenues, and continued price self-discipline (current headcount cuts), we stay constructive on the inventory in 2025,” analysts added.
The financial institution has a “Purchase” ranking on the inventory. It raised its value goal to $710 a share, implying 5% upside from present ranges.
Meta earnings expectations: Fourth-quarter income estimate is $46.98 billion
4th quarter
Income estimate: $46.98 billion
Promoting rev. estimate: $45.66 billion
Household of Apps income estimate: $46.08 billion
Actuality Labs income estimate: $1.11 billion
Different income estimate: $433.3 million
Working earnings estimate: $20.09 billion
Working margin estimate: 42.6%
EPS estimate: $6.78
Advert impressions estimate: +10.1%
Common value per advert estimate: +7.33%
Common Household service customers per day estimate: 3.28 billion
