Meta Platforms(US:META) Zhi Tong Cai Jing·2026-01-26 07:17Core Viewpoint - Meta Platforms is set to report its Q4 2025 earnings on January 28, 2026, with expected revenues between $56 billion and $59 billion, indicating a year-over-year growth of approximately 21% [1]. Financial Performance - In Q3 2025, Meta reported revenues of $51.24 billion, exceeding expectations of $49.41 billion, with an adjusted EPS of $7.25, surpassing the forecast of $6.67 [2]. - The company experienced a 26% year-over-year revenue growth in Q3 2025, with operational income rising to $20.54 billion, an 18% increase [2]. - However, GAAP EPS was significantly impacted by a one-time tax expense, dropping to $1.05 from $6.03, due to a $15.93 billion non-recurring tax charge [2]. User Engagement and Advertising - Daily Active People (DAP) averaged 3.54 billion in September 2025, reflecting an 8% year-over-year increase, driven by strong video performance, particularly from Reels [11]. - Advertising revenue for the family of apps surged by 26% year-over-year to approximately $50.1 billion, with the market closely monitoring growth momentum into Q4, especially during the holiday season [10]. AI Integration and Future Outlook - Meta's AI initiatives are central to its strategy, with the Super Smart Lab showing promising early results, focusing on next-generation models and multimodal capabilities [12]. - The company has raised its full-year capital expenditure guidance for 2025 to between $70 billion and $72 billion, primarily driven by AI infrastructure investments [13]. - Investors will be keen on signals regarding the return on investment from AI and any strategic adjustments in Reality Labs, which has faced ongoing challenges [15][14]. Reality Labs Challenges - The Reality Labs division reported an operational loss of $4.43 billion in Q3 2025, continuing a trend of significant losses since 2021, with cumulative losses exceeding $70 billion [8]. - Despite a 74% year-over-year revenue increase to $470 million, the division is expected to see a revenue decline in Q4 due to the absence of new VR headset launches [8]. Stock Performance and Market Sentiment - Following the Q3 report, Meta's stock price fell by 11.33% to $666.47, primarily due to the impact of the tax charge on GAAP results and increased spending guidance for AI investments [7]. - The stock has seen a 12.74% increase by the end of 2025, although it has faced volatility, with a peak of $796.25 in August 2025 [17]. - Maintaining support levels between $595 and $580 is crucial for sustaining a bullish trend, with potential downside risks if these levels are breached [17].