Meta Platforms, Inc. (NASDAQ:META) is one of the 12 Best Stocks to Buy According to Billionaire David Abrams. Meta Platforms, Inc. (NASDAQ:META) has been a staple in the 13F portfolio of Abrams Capital Management for many years. The fund first purchased a stake in the tech giant back in late 2018. This position comprised just under a million shares. Only minor adjustments were made to this position for a year. In 2020, this holding was increased by 18% to 1.2 million shares. Till the last quarter of 2023, ...

Core Insights - Meta Platforms is set to distribute a quarterly dividend of $0.525 per share on March 26, 2026, maintaining the same payout as the previous quarter, indicating stability in its dividend policy [1][4] - The company's dividend yield is relatively low at 0.35%, translating to approximately $2.10 per share annually [2][4] - Meta's forward payout ratio stands at 6.06%, suggesting that a small portion of profits is returned to shareholders [5] Financial Performance - In Q4 and full-year 2025, Meta reported a revenue increase of 24% year over year, reaching $59.9 billion for the quarter and $200.97 billion for the full year [7] - Net income for Q4 was $22.8 billion, with diluted EPS of $8.88, surpassing consensus estimates [7] - Profit margins are near 30%, operating margins exceed 41%, and return on equity is around 30%, indicating strong profitability metrics [8] Strategic Focus - Meta's advertising revenue, which constitutes the majority of its income, is driven by AI-enhanced targeting and features across its platforms [8] - The company is reportedly considering workforce reductions of up to 20% to offset AI-related costs and support a more AI-centric structure, although the actual impact may be less severe than suggested [9] - Meta is refining its strategic focus by scaling back certain virtual reality and metaverse initiatives to prioritize core platforms and AI investments [9]

Is META a good stock to buy? We came across a bullish thesis on Meta Platforms, Inc. on Compounding Your Wealth’s Substack by Sergey. In this article, we will summarize the bulls’ thesis on META. Meta Platforms, Inc.'s share was trading at $627.45 as of March 16th. META’s trailing and forward P/E were 26.71 and 21.01 respectively according to Yahoo Finance. Peloton Interactive (PTON) Reports $81M Adjusted EBITDA, 52% Net Debt Reduction Meta Platforms, Inc. engages in the development of products that enabl ...

Core Viewpoint - Meta Platforms (META) is experiencing significant interest from hedge funds and institutional investors, who view it as a compelling opportunity in the AI and digital advertising sectors, despite recent market volatility [1] Financial Performance - In Q4, Meta's advertising revenue grew by 24% to nearly $60 billion, driven by Reels and AI-powered ad tools [1] - Analysts project a 12-month price target of $844 for Meta, indicating a potential upside of approximately 31% from current levels, with a forecasted annual EPS growth of 19% over the next five years [1] Capital Expenditure Concerns - Meta's capital expenditure guidance for 2026 is set between $115 billion and $135 billion, nearly double the 2025 levels, raising investor concerns about potential margin compression [1] - The aggressive spending is primarily allocated for data centers, GPUs, and AI infrastructure, which may lead to short-term execution risks [1] Institutional Interest - High-profile hedge funds have been accumulating positions in Meta, reflecting confidence that short-term concerns are overstated and that the company is positioning itself as a key player in the next wave of technology [1] - The stock's forward P/E ratio of around 18x is considered attractive compared to other pricier AI peers [1] AI Infrastructure Development - Meta has expanded its partnership with Nvidia, securing millions of GPUs and has signed a multi-billion-dollar deal with Google for Tensor Processing Units (TPUs) to diversify its supply chain [1] - These strategic partnerships are aimed at building one of the largest AI infrastructures globally while mitigating supply risks [1] Market Positioning - Meta's core advertising business remains unmatched, contributing to double-digit revenue growth, while AI enhancements are expected to boost engagement and ad efficiency [1] - The company is seen as a leader in accessible AI, with its open-source Llama models gaining traction [1]

Core Insights - Meta Platforms reported Q4 2025 revenue of $59.89 billion, exceeding the $58.41 billion forecast, with an EPS of $8.88, up 8.4% from the consensus of $8.19 [2] - The Q1 2026 revenue forecast is between $53.5 billion and $56.5 billion, significantly above the $51.4 billion expected by analysts, indicating a 30% growth acceleration [3] Financial Performance - Meta's capital expenditure (Capex) for 2026 is projected to be between $115 billion and $135 billion, a substantial increase from the $72.22 billion invested in 2025 [5] - Reality Labs reported a loss of $6 billion in the quarter, which is about 10% of total revenue, but the market is accepting these losses as long as advertising revenue continues to grow above 20% [6] Market Position - The stock is trading at a trailing P/E of approximately 30x, with a Q4 EPS of $8.88 and an annual EPS of $23.50 for 2025 [7] - The revenue growth of 24–30% justifies the 30x multiple compared to peers, with a current share price valuation of $843 and an expected upside potential of over 20% [9] Strategic Initiatives - Meta is focusing on monetizing its AI investments, with plans to integrate large language models into its recommendation systems for Instagram and Facebook [5] - The company aims to cap losses from Reality Labs in 2026, with expectations of gradual decreases in losses thereafter [6]

Core Viewpoint - Meta's Q4 2025 earnings report exceeded market expectations, driven by strong advertising performance, leading to a significant stock price increase post-announcement [3][5]. Financial Performance - Q4 2025 revenue reached $59.893 billion, a 24% increase year-over-year, while net income was $22.768 billion, up 9% [4][5]. - For the full year 2025, Meta's revenue was $200.966 billion, a 22% increase, but net income decreased by 3% to $60.458 billion [5]. - Advertising revenue in Q4 grew by 24% to $58.1 billion, accounting for 97% of total revenue [5]. Future Guidance - Meta's Q1 2026 revenue guidance is projected to grow by 26%-34%, reaching between $53.5 billion and $56.5 billion, significantly above the market's 21% growth expectation [6]. - The positive outlook is attributed to expectations around the commercialization of Threads and the continued success of Reels [6]. Capital Expenditure - Meta's capital expenditure for Q4 was $22.14 billion, with a full-year total of $72.22 billion, and guidance for 2026 suggests spending between $115 billion and $135 billion, nearly double the previous year [7]. - The increase in capital expenditure is primarily aimed at supporting the Meta Superintelligence Labs and core business investments [7]. AI Developments - Meta is focusing on AI advancements, with plans to launch new models, including the Avocado language model and the Mango image and video model, in the upcoming months [8][9]. - The newly established Meta Superintelligence Labs has already delivered promising AI models, indicating strong potential for future developments [8][9].

Core Viewpoint - Meta's Q4 2025 earnings report exceeded market expectations, driven by strong advertising performance, leading to a significant stock price increase post-announcement [1][4]. Financial Performance - Q4 2025 revenue reached $59.893 billion, a 24% increase from $48.385 billion in Q4 2024 [2][4]. - Q4 2025 net income was $22.768 billion, up 9% from $20.838 billion in Q4 2024 [2][4]. - For the full year 2025, revenue totaled $200.966 billion, a 22% increase year-over-year, while net income decreased by 3% to $60.458 billion [2][4]. Advertising Business - The strong performance in Q4 was primarily attributed to a 24% increase in advertising revenue, which reached $58.1 billion, accounting for 97% of total revenue [4]. Future Guidance - Management provided optimistic guidance for Q1 2026, expecting revenue growth of 26%-34%, translating to $53.5 billion to $56.5 billion, significantly above the market's 21% growth expectation [4]. - This guidance reflects positive expectations regarding the commercialization of Threads and the continued strength of Reels [4]. Capital Expenditure - Q4 2025 capital expenditures were $22.14 billion, with total expenditures for the year at $72.22 billion [5]. - For 2026, capital expenditures are projected to be between $115 billion and $135 billion, nearly double the previous year's spending, primarily to support the Meta Superintelligence Labs and core business investments [5]. - Despite increased infrastructure investments, management anticipates higher operating profits in 2026 compared to 2025 [5]. AI Developments - Meta is focusing on AI advancements, with plans to launch new models, including a large language model named Avocado and an image and video model named Mango in Q1 2026 [6]. - The newly established Meta Superintelligence Labs has delivered its first AI models, showing promising performance and potential [6]. - CEO Mark Zuckerberg emphasized the rebuilding of AI projects and the expected acceleration of AI applications across various fields in 2026 [6].

We're back on Morning Trade Live. We'll get a closer look at the Mag 7 starting this afternoon when Meta, Microsoft, and Tesla all report quarterly earnings. Tesla and Microsoft have made modest gains over the last 12 months.Meta has been the lagard though of the group, just below the flatline for the year. So, let's go inside out on Meta ahead of earnings. Joining us now is Melissa Otto, head of Visible Alpha Research, S&P Global Market Intelligence.Joining me around the desk this morning. Hello to you, Me ...

Core 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 [1][2]. - The company expects total expenditures for 2025 to be between $116 billion and $118 billion, up from previous estimates of $114 billion to $118 billion, reflecting a year-over-year growth rate of 22% to 24% [1][13]. - Capital expenditures for 2025 are projected to be between $70 billion and $72 billion, higher than the prior estimate of $66 billion to $72 billion [1][13]. Operational Highlights - Q3 2025 saw a 26% year-over-year increase in revenue, with daily active users averaging 3.54 billion, an 8% increase [2]. - The advertising revenue from Meta's family of apps grew by 26% year-over-year, reaching approximately $50.1 billion [10]. - The average price per ad increased by 10% year-over-year, and the number of ad impressions rose by 14% [2][10]. Challenges and Risks - The Reality Labs division reported an operating 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 growth in Reality Labs to $470 million, management anticipates a decline in Q4 revenue due to the absence of new VR headset launches in 2025 [8][14]. Future Outlook - Investors will focus on key areas in the upcoming Q4 earnings report, including the performance of the advertising business, the impact of AI investments, and the ongoing challenges faced by Reality Labs [9][15]. - The company is expected to provide insights into spending trends for 2026, with indications that expenditure growth will be "significantly larger" [13][15]. Market Performance - As of the end of 2025, Meta's stock price increased by 12.74%, closing at $660.09, which is lower than the Nasdaq 100 index's total return of 21% for the year [17]. - The stock has experienced volatility, with a significant drop of 11.33% following the Q3 earnings report, primarily due to tax impacts distorting GAAP earnings [7][17]. Strategic Focus - CEO Mark Zuckerberg emphasized the strong performance of the business and community, highlighting the potential for exciting developments in the coming years, particularly in AI and augmented reality [4]. - The integration of AI is central to Meta's strategy, with a focus on enhancing advertising effectiveness and user engagement through advanced models and infrastructure [12].

Meta’s new artificial intelligence lab has reportedly delivered its first AI models internally.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.Andrew Bosworth, the company’s chief technology officer, told Reuters W ...