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Meta Platforms (NASDAQ: META) is scheduled to report its Q1 2025 earnings after the market closes today, Wednesday, April 30.
Earnings Expectations
Earnings Per Share (EPS): Analysts anticipate an EPS of $5.21, representing an 11% increase from $4.71 in Q1 2024.
Revenue: Projected at $41.36 billion, marking a 13% year-over-year growth from $36.45 billion
Key Focus Areas
Advertising Revenue: Advertising constitutes approximately 97% of Meta’s total revenue. Analysts are closely monitoring the impact of recent U.S. tariffs, especially given that over 10% of Meta’s ad revenue is derived from China-based advertisers.
AI Investments: Meta is investing heavily in artificial intelligence, with capital expenditures projected between $60 billion and $65 billion for 2025. The company recently introduced the Llama 4 series of AI models and launched the Meta AI app, aiming to enhance user engagement across its platforms.
Reality Labs: The division responsible for Meta’s metaverse initiatives, Reality Labs, has accumulated approximately $50 billion in losses since 2020. Investors are keen to see if Meta will implement cost-cutting measures or provide updates on the division’s future direction.
Stock Performance
Year-to-Date: META shares have declined by approximately 7.44%.
From February 2025 all time High at $740.91: The stock has dropped about 35.24% from its peak to the low for the year on April 21
Recent Rebound: There has been a modest recovery of around 12.90% from the recent lows.
Moving Averages: The stock is currently trading below its 200-day moving average at $578.68 and its 50-day moving average at $587.95.
This article was written by Greg Michalowski at www.forexlive.com.
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