Meta earnings live updates: Wall Street watching for AI monetization, reaction to DeepSeek mania
Meta will report fourth-quarter earnings on Wednesday after the closing bell.
Investors will be watching for key details on AI monetization. They’ll also be looking for any commentary around the sudden rise of DeepSeek, whose AI models roiled the tech industry this week, wiping out more than $1 trillion of market value.
Meta’s earnings-release time is shortly after 4 p.m. ET, and its conference call with analysts will start around 5 p.m.
Meta’s stock was up 15% year-to-date through Tuesday’s close, outpacing the the S&P 500’s 3% gain.
Bank of America: A slew of positive catalysts underway
Meta has said it would cut another 5% of its workforce this year, which could boost profit margins, according to Bank of America.
A host of tailwinds may be building for Meta this year, Bank of America said.
Analysts wrote that the company is still in the early stages of monetizing its AI projects and integrating the tech into its messaging platforms, such as WhatsApp and Messenger.
Meta may also stand to benefit from any disruption to TikTok, with some firms potentially shifting to Meta to advertise.
“With a stable macro backdrop, a growing AI contribution to ad revenues, ramping messaging revenues, and continued cost discipline (recent headcount cuts), we remain positive on the stock in 2025,” analysts added.
The bank has a “Buy” rating on the stock. It raised its price target to $710 a share, implying 5% upside from current levels.
Meta earnings expectations: Fourth-quarter revenue estimate is $46.98 billion
4th quarter
- Revenue estimate: $46.98 billion
Advertising rev. estimate: $45.66 billion
Family of Apps revenue estimate: $46.08 billion
Reality Labs revenue estimate: $1.11 billion
Other revenue estimate: $433.3 million
- Operating income estimate: $20.09 billion
Family of Apps operating income estimate: $25.3 billion
Reality Labs operating loss estimate: $5.1 billion
- Operating margin estimate: 42.6%
- EPS estimate: $6.78
- Ad impressions estimate: +10.1%
- Average price per ad estimate: +7.33%
- Average Family service users per day estimate: 3.28 billion
First quarter
- Revenue estimate: $41.67 billion
- Total expenses estimate: $108.03 billion
- Capital expenditure estimate: $52.18 billion
Full year
- Total expenses estimate: $108.03 billion
- Capital expenditure estimate: $52.18 billion
