Meta earnings top expectations as company forecasts higher costs, AI investments in year ahead

Published On Jan 29, 2025, 4:43 PM

Meta Platforms recently reported its fourth-quarter earnings, which exceeded analyst expectations. The company posted earnings per share of $8.02 and revenue of $48.4 billion, beating forecasts of $6.75 EPS and $46.9 billion in revenue. Despite this strong performance, Meta anticipates slower revenue growth for the upcoming quarter and projects increased expenses for 2025, primarily due to substantial investments in AI infrastructure. The company's net income for the year rose considerably, but it did not provide a full-year revenue forecast, citing ongoing investments as crucial for future growth. Meta plans to spend between $60 and $65 billion on AI initiatives in 2025, indicating a significant shift towards tech-driven capabilities within its operations.

Stock Forecasts

META

Positive

Despite strong Q4 earnings, the forecasted increase in costs might pressure near-term earnings. However, the substantial investment in AI could lead to long-term growth and improved market positioning.

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