Financial results and outlook for 2025
Meta Platforms Inc (META:NASDAQ), the parent company of Facebook, Instagram and WhatsApp, announced its financial results for the fourth quarter of 2024. Net income reached $20.83 billion, a 49% year-over-year increase. The company’s revenue grew 21% to $48.39 billion, with advertising revenue being the main source of growth. CEO Mark Zuckerberg highlighted significant advances in artificial intelligence, expecting Meta AI to reach more than a billion users by 2025.
Meta Platforms also predicts increased operating costs for 2025, which are expected to be in the range of $114 billion to $119 billion. This increase is attributed to rising infrastructure investment and labor costs, but which analysts believe to be higher than originally expected.
Share price development
Shares of Meta Platforms Inc (META:NASDAQ) are currently trading at $676.49, up slightly from the previous day. During 2025, the company’s stock has risen by more than 16% and has gained approximately 70% over the past 52 weeks. This positive trend indicates continued investor confidence in the company’s growth prospects.
Regulation and changes to the business model
In response to pressure from European regulators, Meta has decided to offer users in Europe the option of less personalised ads on the Facebook and Instagram platforms. The new ad targeting model will be based on the content that users interact with during a particular session, with the user’s age, gender and location being key parameters. Some of these ads will be able to be skipped for a few seconds.
In addition, Meta plans to reduce the price of its ad-free subscription service in Europe by approximately 40%. The move is part of a broader strategy to comply with new European Union regulations that emphasize transparency and greater user choice in the digital environment.
Summary
Meta Platforms Inc (META:NASDAQ) continues to solidify its position as a leader in digital advertising and artificial intelligence. Despite higher expected operating expenses, the stock maintains an uptrend, signaling investor optimism. Changes to the business model in Europe demonstrate the company’s willingness to adapt to new regulatory requirements and ensure the long-term sustainability of its business in key regions.
Meta Platforms Inc (META:NASDAQ) also pays a regular quarterly dividend of $0.50 per share, for an annual dividend of $2.00. At the current share price of $676.49, the dividend yield is 0.30%. The average target price for Meta Platforms Inc (META:NASDAQ) stock has been set at $811 per share by Zacks.com analysts with a high estimate for the short to medium term investment horizon.
