Meta Platforms (META) stock is surging Thursday after the parent company of Facebook and Instagram beat top- and bottom-line expectations for its second quarter and issued solid guidance for its third quarter.
In the three months ended June 30, Meta's revenue increased 22.1% year-over-year to $39.1 billion, due in part to a 7% rise in its family daily active people (DAP) users to 3.3 billion. Meta also said its earnings per share (EPS) jumped more than 73% from the year-ago period to $5.16.
"We had a strong quarter, and Meta AI is on track to be the most used artificial intelligent (AI) assistant in the world by the end of the year," said Meta Platforms' CEO Mark Zuckerberg in a statement. "We've released the first frontier-level open source AI model, we continue to see good traction with our Ray-Ban Meta AI glasses, and we're driving good growth across our apps."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results topped analysts' expectations. Wall Street was anticipating revenue of $38.3 billion and earnings of $4.73 per share, according to Yahoo Finance.
For the third quarter, Meta anticipates revenue in the range of $38.5 billion to $41 billion. The midpoint of this range, $39.75 billion, came in ahead of analysts' expectations of $39.1 billion.
Meta also raised the low end of its full-year capital expenditures outlook, now anticipating a range of $37 billion to $40 billion from the previous guidance of $35 billion to $40 billion.
In the company's earnings call, Chief Financial Officer Susan Li said Meta expects "expect significant capex growth in 2025" as it invests to support AI research and product development efforts.
Is Meta Platforms stock a buy, sell or hold?
Meta Platforms is one of the best-performing Magnificent 7 stocks this year, up more than 47% on a price basis. Unsurprisingly, the social media giant is one of Wall Street's favorite stocks.
According to S&P Global Market Intelligence, the average analyst target price for META stock is $551.62, representing an upside of more than 6% to current levels. Additionally, the consensus recommendation is Buy, teetering on Strong Buy.
Financial services firm Wedbush is one of the most bullish outfits on META stock with an Outperform rating (equivalent to Buy) and a $600 price target.
"Meta continues to deliver healthy engagement trends," says Wedbush analyst Scott Devitt. "The company has a number of drivers of sustainable growth in place, including continued adoption of Advantage+ campaigns and improving monetization across Reels and messaging ads."
The analyst adds that the communication services stock's "risk/reward is attractive given the improved growth trajectory in the second half, broadly healthy digital advertising trends, and optionality related to future AI monetization."
Related Content
-
Ask the Editor — Tax Questions on the New Senior DeductionAsk the Editor In this week's Ask the Editor Q&A, we answer tax questions from readers on the new $6,000 deduction for taxpayers 65 and older.
-
These Summer 2025 Back-to-School Tax-Free Weekends Are Starting NowSales Tax Over a dozen states offer back-to-school shoppers a sales tax holiday this summer.
-
Do You Need Flood Insurance? I'm an Insurance Expert, and Here's Where You Can Get ItStandard homeowners insurance does not cover flood damage, so you might need separate flood insurance, which you can get either through FEMA or private companies. Here are the details.
-
I'm an Investment Professional: These Are the Three Money Tips I'm Giving My College GradCollege grads can help set themselves up for financial independence by focusing on emergency savings, opting into a 401(k) at work (if it's offered) and disciplined, long-term investing.
-
Stock Market Today: S&P 500, Nasdaq Hit New Highs on Retail Sales RevivalStrong consumer spending and solid earnings for AI chipmaker Taiwan Semiconductor Manufacturing boosted the broad market.
-
If You'd Put $1,000 Into Berkshire Hathaway Stock 20 Years Ago, Here's What You'd Have TodayBerkshire Hathaway is a long-time market beater, but the easy money in BRK.B has already been made.
-
New SALT Cap Deduction: Unlock Massive Tax Savings with Non-Grantor TrustsThe One Big Beautiful Bill Act's increase of the state and local tax (SALT) deduction cap creates an opportunity to use multiple non-grantor trusts to maximize deductions and enhance estate planning.
-
Know Your ABDs? A Beginner's Guide to Medicare BasicsMedicare is an alphabet soup — and the rules can be just as confusing as the terminology. Conquer the system with this beginner's guide to Parts A, B and D.
-
I'm an Investment Adviser: Why Playing Defense Can Win the Investing GameChasing large returns through gold and other alternative investments might be thrilling, but playing defensive 'small ball' with your investments can be a winning formula.
-
Stock Market Today: Powell Rumors Spark Volatile Day for StocksStocks sold off sharply intraday after multiple reports suggested President Trump is considering firing Fed Chair Jerome Powell.
