Will Higher Ad Revenues Aid Meta Platforms Stock in Q3 Earnings?

Core Insights - Meta Platforms is expected to report third-quarter 2025 results on October 29, reflecting benefits from increased advertising revenues, with estimates at $48.5 billion, indicating a year-over-year growth of 21.6% [1][9] - The company has consistently beaten earnings estimates in the past four quarters, with an average surprise of 20.47% [1] Advertising Revenue Growth - Meta's advertising revenues are projected to grow significantly, with the Asia-Pacific region estimated at $9.66 billion (20% growth), Europe at $11.65 billion (24.5% growth), the U.S. and Canada at $21.7 billion (24.8% growth), and the Rest of the World at $6.37 billion (25.1% growth) [6][9] - The global ad spending is anticipated to rise by 7.4% to $1.17 trillion in 2025, with Meta, Alphabet, and Amazon expected to capture about two-thirds of this new spending [3] Competitive Landscape - Meta is positioned as a key player in the digital ad market alongside Alphabet, Amazon, and Snap, with a reported 11% increase in ad impressions year-over-year in Q2 2025 [3] - Competitors like Alphabet and Amazon have also shown strong growth in their advertising revenues, with Alphabet's revenues at $82.54 billion (11.7% growth) and Amazon's at $15.6 billion (23% growth) [4] AI and User Engagement - The company is leveraging AI and machine learning to enhance ad ranking and measurement, which is driving advertisers' return on investment and user engagement across platforms like WhatsApp, Instagram, Facebook, and Threads [5][9] - AI-driven feed recommendations are noted as a significant factor in maintaining user engagement and driving user base growth [5] User Metrics - The consensus estimate for Family Daily Active People (DAP) is expected to reach 3.49 billion for Q3 2025, indicating strong user engagement across Meta's platforms [7]