Meta Platforms:Quarterly Results/2025 Q1: Difference between revisions

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 == Analysts opinions and insights ==
-==== Meta will likely top management guidance ====
+=== Meta will likely top management guidance ===
 * Outperform, $730->$640: Wolfe Research [https://www.investing.com/news/analyst-ratings/wolfe-research-cuts-meta-stock-price-target-to-640-from-730-93CH-3973646 expects] Meta's Q1 2025 revenue will hit the upper-end of the management guidance and align with consensus estimates due to conservative prior guidance and a slight improvement in foreign exchange rates.
 * Buy, $750->$675: Guggenheim [https://www.investing.com/news/analyst-ratings/guggenheim-cuts-meta-platforms-price-target-to-675-keeps-buy-rating-93CH-3973486 expects] Meta's Q1 2025 advertising revenue to come in above management's upper guidance of $39.8-$41.8 billion. The analysts cited Apptopia data which indicate robust user engagement in Facebook and Instagram. It indicates that Facebook's user time grew 9.3%, an improvement from 6.5% in Q4, while Instagram witnessed a 5.9% growth, recovering from a 1.0% decline.
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 * Overweight, $790->$624: Analyst Deepak Mathivanan of Cantor Fitzgerald [https://www.investing.com/news/analyst-ratings/cantor-fitzgerald-cuts-meta-platforms-stock-target-to-624-93CH-3987963 said] Meta's Q1 earnings will likely align with the company's high-end guidance. He said they noticed a slight slowdown in March, but this will be offset by favorable foreign exchange rates.
-==== Q2 and 2025 guidance will likely be weak ====
+=== Q2 and 2025 guidance will likely be weak ===
 * Wolfe Research [https://www.investing.com/news/analyst-ratings/wolfe-research-cuts-meta-stock-price-target-to-640-from-730-93CH-3973646 expects] Meta will guide Q2 revenue at a low single-digit percentage, below consensus estimate of $41.5 billion- $44 billion. Wolfe said they lowered their 2025 estimates by 1.5% to 2.0%.
 * Guggenheim [https://www.investing.com/news/analyst-ratings/guggenheim-cuts-meta-platforms-price-target-to-675-keeps-buy-rating-93CH-3973486 said] they revised their industry-wide ad demand growth projection for 2025 to 12.5% from 15.1% due to anticipated deceleration in the sector.
-* Piper Sandler [https://thefly.com/permalinks/entry.php/id4103861/8656276159/META-Meta-Platforms-price-target-lowered-by--at-Piper-Sandler-heres-why said] the focus is now on Q2 guidance, where it expects revenue in the range of $42.5 billion and $45.5 billion (9-16.5%). It also expects management to reiterate its operating expenses for 2025 ($114-$119 billion), alongside capex at $60-$65 billion. Piper Sandler pointed out that they lowered their revenue estimate for 2025 and 2026 by 2% and 4% respectively, due to exposure to China.
+* Piper Sandler [https://thefly.com/permalinks/entry.php/id4103861/8656276159/META-Meta-Platforms-price-target-lowered-by--at-Piper-Sandler-heres-why said] the focus is now on Q2 guidance, where it expects revenue in the range of $42.5 billion and $45.5 billion (9-16.5%). Piper Sandler pointed out that they lowered their revenue estimate for 2025 and 2026 by 2% and 4% respectively, due to exposure to China.
 * Overweight, $710->$645: keyBanc [https://thefly.com/permalinks/entry.php/id4103089/5489276161/META-Meta-Platforms-price-target-lowered-by--at-KeyBanc-heres-why said] their ad checks are deteriorating, with budget growth expectations now landing in the 3%-5% range. Although they expect digital ad spend to outpace the market by 2-3 turns, they are incrementally cautious that ripple effects on supply chains and consumer spending could impact margins and EPS.
 * Buy, $765->$640: Bofa [https://thefly.com/permalinks/entry.php/id4102898/5489276161/META-Meta-Platforms-price-target-lowered-by--at-BofA-heres-why said] channel checks conducted in mid-March indicate pressure on ad spending will materialize due to the negative headlines and the latest tariff announcements. Bofa lowered 2025 ad spend estimates by about 4%. They lowered Meta's 2025 and 2026 revenues by roughly 4% and EPS estimates by 5%-7% due to deeper ad auctions, higher mix of direct ad response and 2%-3% foreign exchange benefit.
-* Cantor Fitzgerald [https://www.investing.com/news/analyst-ratings/cantor-fitzgerald-cuts-meta-platforms-stock-target-to-624-93CH-3987963 said] Q2 guidance may not meet consensus at the higher range, which is expected to be $44.4 billion (+14% y/y). The guidance considers the company's exposure to the tariffs. They project Q2 revenue growth of 9% and second-half revenue growth of 7% y/y. Cantor Fitzgerald expects Meta to reiterate its full-year operating expenses and capital expenditure.
+* Cantor Fitzgerald [https://www.investing.com/news/analyst-ratings/cantor-fitzgerald-cuts-meta-platforms-stock-target-to-624-93CH-3987963 said] Q2 guidance may not meet consensus at the higher range, which is expected to be $44.4 billion (+14% y/y). The guidance considers the company's exposure to the tariffs. They project Q2 revenue growth of 9% and second-half revenue growth of 7% y/y.
-* Buy, $770->$700: Truist [https://www.investing.com/news/analyst-ratings/truist-cuts-meta-platforms-stock-price-target-to-700-93CH-3991326 expect]s Meta's management to guide for Q2 2025 revenue in the range of $41.5 billion to $44 billion (+6%-13%). It also expects it to maintain its opex and capex guidance for the full year.
+* Buy, $770->$700: Truist [https://www.investing.com/news/analyst-ratings/truist-cuts-meta-platforms-stock-price-target-to-700-93CH-3991326 expect]s Meta's management to guide for Q2 2025 revenue in the range of $41.5 billion to $44 billion (+6%-13%).
+=== Chinese advertisers have cut ad spend ===
+* Citing the Information and Search Engine Land, Mizuho [https://www.investing.com/news/analyst-ratings/mizuho-cites-chinese-ad-cuts-competition-in-meta-stock-outlook-93CH-3986549 pointed out] that Chinese advertisers have reduced their ad spend due to the tariffs.
+* Buy, $710->$525: MoffettNathanson [https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3R00UQ:0-meta-s-ad-revenue-from-chinese-e-retailers-at-risk-on-trade-worries-moffettnathanson-says/ said] Meta's financial performance could be materially hit this year as Chinese advertisers pull back marketing spend due to escalating U.S.-China trade tensions. The analysts added that the end of de minimis rule, which allowed goods below a certain threshold value to enter the U.S. could impact Chinese advertiser demand on Meta Platforms. They added that Temu and Shein were responsible for the spike in Meta's ad dollars in 2023. They added that cost-cutting measures are unlikely to absorb the hit.
-==== Chinese advertisers have cut ad spend ====
+=== Meta is likely to reiterate its 2025 opex and capex guidance ===
-* Citing the Information and Search Engine Land, Mizuho [https://www.investing.com/news/analyst-ratings/mizuho-cites-chinese-ad-cuts-competition-in-meta-stock-outlook-93CH-3986549 pointed out] that Chinese advertisers have reduced their ad spend due to the tariffs.
+* Cantor Fitzgerald [https://www.investing.com/news/analyst-ratings/cantor-fitzgerald-cuts-meta-platforms-stock-target-to-624-93CH-3987963 expects] Meta to reiterate its full-year operating expenses and capital expenditure.
+* Truist [https://www.investing.com/news/analyst-ratings/truist-cuts-meta-platforms-stock-price-target-to-700-93CH-3991326 expects] Meta to maintain its opex and capex guidance for the full year.
+* Piper Sandler [https://thefly.com/permalinks/entry.php/id4103861/8656276159/META-Meta-Platforms-price-target-lowered-by--at-Piper-Sandler-heres-why expects] management to reiterate its operating expenses for 2025 ($114-$119 billion), alongside capex at $60-$65 billion.
+== Competitor results and expectations ==
+== Advertising spend and pricing insights ==
 == References ==