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

=== Meta will likely top management guidance in Q1 due to healthy user engagement and ad spend ===

* 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.

* Overweight, $775->$610: Piper Sandler [https://thefly.com/permalinks/entry.php/id4103861/8656276159/META-Meta-Platforms-price-target-lowered-by--at-Piper-Sandler-heres-why said] their checks with an Ad Buyer were considered the best in the group.

* Evercore [https://seekingalpha.com/news/4430814-evercore-gives-a-rundown-on-internet-stocks-ahead-of-q1-report said] they view the street's Q1 revenue estimates of +14% y/y as reasonable. They said their ad checks indicate fairly stable ad demand environment across most channels. They added that channel checks on ad demand and ROAS trends were positive for Meta.

* 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.

* Cavenagh Research [https://seekingalpha.com/article/4777241-meta-platform-q1-considering-the-risk-reward-of-a-bullish-option-strategy said] their checks with six marketing professionals, each managing more than $1 million quarterly ad spend indicates Meta continues to capture outsized marketing spend in the US. It pointed out that advertisers reported strong tailwinds in Q4 have continued into Q1. Four of the seven spenders noted ad spend grew 5%-10%, one saw growth of 10% while two saw flat growth.  

=== Q2 and 2025 guidance will likely be weak ===