TLDR
- Meta (META) stock price hit all-time high of $786 after beating Q2 2025 earnings expectations with $7.14 EPS vs $5.92 estimate
- Meta stock revenue jumped 22% to $47.52 billion, beating $44.80 billion forecast, driven by advertising growth to $46.56 billion
- Meta earnings Q3 guidance of $47.5-$50.5 billion revenue far exceeds Wall Street’s $46.14 billion projection
- Reality Labs posted $4.53 billion operating loss on $370 million revenue as VR/AR investments continue
- Meta Platforms stock rises on heavy AI investments with $66-72 billion capex planned for 2025
Meta Platforms stock (META) delivered a powerful second-quarter 2025 performance that sent META stock price soaring over 10% to an all-time high of $786. The social media giant’s Meta stock performance crushed Wall Street expectations across key metrics.
Meta earnings per share reached $7.14, crushing the $5.92 consensus estimate by a wide margin. Meta stock revenue climbed 22% year-over-year to $47.52 billion, easily topping forecasts of $44.80 billion.
The Meta advertising business remained the engine driving Meta stock growth. Ad revenue hit $46.56 billion, surpassing market expectations as pricing recovered and user engagement strengthened.
Meta’s family of apps reached 3.48 billion daily active users. This figure beat projections and highlighted the platform’s continued global reach driving Meta stock price higher.
Meta net income surged 36% to $18.34 billion compared to the same quarter last year. Operating costs grew 12% to $27.08 billion, reflecting infrastructure investments and hiring affecting Meta stock fundamentals.
Meta stock today gained over 10% following the earnings announcement. The META stock price surge reflects investor confidence in the company’s AI strategy and advertising revenue growth.
Meta Stock Outlook: Q3 Guidance Exceeds Expectations
Meta management provided upbeat third-quarter guidance that thrilled META stock investors. Revenue projections of $47.5 billion to $50.5 billion came in well above Wall Street’s $46.14 billion estimate.
The company warned that Q4 growth may slow as it faces tougher comparisons. Fourth-quarter 2024 delivered strong performance that creates higher hurdles for Meta stock performance.
Meta stock price target increases followed the earnings beat. Capital expenditure guidance increased to $66 billion to $72 billion for 2025, supporting long-term Meta stock growth.
Total expenses are projected between $114 billion and $118 billion for the year. CFO Susan Li pointed to AI data center investments as the primary cost driver affecting Meta stock margins.
Technical hiring acceleration will also push up employee compensation expenses. The company is exploring external financing for massive infrastructure projects supporting Meta stock’s AI ambitions.
These partnerships could help fund multi-gigawatt data center developments. Meta stock analysts view these investments as positive for long-term growth prospects.
Meta AI Strategy: Heavy Investment Drives Stock Performance
Meta’s artificial intelligence strategy involves both talent acquisition and infrastructure spending driving Meta stock price appreciation. The company has hired several high-profile AI researchers in recent months.
Former OpenAI researcher Shengjia Zhao joined the Meta team. Scale AI founder Alexandr Wang also came aboard along with former GitHub CEO Nat Friedman, boosting Meta stock investor confidence.
Safe Superintelligence CEO Daniel Gross and Apple’s former AI head Ruoming Pang rounded out the hiring spree. These additions signal Meta’s serious AI ambitions supporting Meta stock growth.
The company invested $14.3 billion in Scale AI as part of its infrastructure push. Plans include building the Hyperion data center facility with five gigawatts of capacity supporting Meta stock’s long-term strategy.
CEO Mark Zuckerberg outlined his vision for “personal superintelligence” in the latest shareholder letter. This approach focuses on empowering individual users rather than centralizing automation, differentiating Meta stock from competitors.
Reality Labs posted a $4.53 billion operating loss on $370 million in revenue. The loss narrowed from previous quarters but revenue fell short of analyst expectations for this Meta stock segment.
The division continues developing AI-enabled hardware including Ray-Ban Meta smart glasses. Plans for standalone AI glasses remain in development, potentially boosting future Meta stock performance.
Meta stock has surged 47.71% over the past year, reaching a market cap of $1.95 trillion. META stock price momentum reflects strong fundamental performance and AI investment strategy.
The company’s gross profit margin stands at an impressive 82%. Financial health scores rate as “GREAT” according to investment analysis firms covering Meta stock.
Loop Capital raised its Meta stock price target to $980 following the earnings report. The firm cited revenue growth acceleration and positive outlook as key factors supporting Meta stock valuation.
Freedom Broker downgraded Meta stock from Buy to Hold despite increasing its price target to $800. The firm acknowledged impressive financial results but cited valuation concerns for META stock price.
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