What Analysts Think of Meta Stock Ahead of Earnings

Meta Platforms Q4 Earnings Preview - Meta Platforms is set to report its fourth-quarter results after the closing bell Wednesday, with analysts largely bullish on the company's ability to build on a strong 2024 as its AI investments show signs of paying off [2] - The company's stock price rose by nearly two-thirds last year, driven by revenue upside, strong cost discipline, and optimism on AI capabilities [3] - Bank of America analysts remain positive on the stock in 2025, citing rising AI contributions to ad revenue, growing messaging revenue, and recent workforce reductions [3] Analyst Ratings and Price Targets - Bank of America reiterated a "buy" rating and raised its price target for Meta's stock to $710 from $660 [4] - Overall, 26 of the 28 analysts covering Meta tracked by Visible Alpha have a "buy" or equivalent rating, with the remaining two issuing "hold" ratings [4] - The consensus price target is about $686, a roughly 6% premium over the stock's record closing price Friday [4] Revenue and Earnings Expectations - Wall Street expects Meta to report fourth-quarter revenue of $47.02 billion, up 17% year-over-year [5] - Earnings are projected to rise to $17.52 billion, or $6.75 per share, up from $14.02 billion, or $5.33 per share, a year earlier [5] - Meta is boosting spending on AI, with CEO Mark Zuckerberg unveiling plans to invest $60 billion to $65 billion in capital expenditures this year, up from an estimated $38 billion to $40 billion in 2024 [6] Stock Performance and Market Impact - Shares of Meta climbed 1.7% in Friday's session to close at an all-time high of $647.49 [7] - The stock has added close to 65% over the past 12 months [7] - The short-lived TikTok ban in the U.S. earlier this month could be a "potential added tailwind" in the current quarter, as some TikTok users migrated to Instagram Reels [6]