“`html
Meta Platforms Financial Results and Challenges
Meta Platforms (NASDAQ: META) reported a revenue increase of 22% year-over-year to $47.5 billion for the second quarter of 2025. Operating income rose by 38%, with the operating margin expanding to 43% due to robust advertising demand.
The company’s business model is heavily reliant on advertising, which constitutes nearly all its revenue. This makes it vulnerable to fluctuations in marketing budgets, particularly during economic downturns. Additionally, Meta’s dependence on mobile platforms controlled by Apple and Alphabet poses further risks to its ad performance and distribution.
Despite strong growth metrics, analysts suggest a price-to-earnings multiple in the high-20s is justified given the cyclical nature of its revenue, platform risks, and increasing competition from rivals like TikTok and Snapchat.
“`
