META Gains Confidence as Strong Q2 Eases AI Monetization Worries

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Meta Platforms Inc. (META) reported second-quarter 2025 adjusted earnings of $7.14 per share, exceeding the Zacks Consensus Estimate by 22.5% and up 38.4% year over year. Revenues reached $47.52 billion, outpacing the consensus estimate by 6% and rising 21.6% year over year. As of June 30, the daily active users across its platforms reached 3.48 billion, up 6% year over year.

Advertising revenues for the second quarter were $46.56 billion, a 21.5% increase from the previous year, exceeding the Zacks Consensus Estimate of $43.94 billion. The company’s AI-driven advertising platform attracted over 4 million advertisers, with notable improvements in ad returns. META’s family of apps also improved user engagement, with Instagram and Facebook seeing boosts in conversion rates of 5% and 3%, respectively.

Looking ahead, META anticipates third-quarter 2025 revenues between $47.5 billion and $50.5 billion, surpassing the current estimate of $46.32 billion. The 2025 revenue forecast suggests an increase of 14.2% year over year, with earnings per share estimated at $25.71, reflecting a 7.8% rise year over year. The company is also increasing its 2025 capital expenditure guidance to $66-$72 billion to support its AI investments.

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