Meta Platforms Enhances AI Capabilities to Boost Revenue
Chicago, IL – December 29, 2025 – Meta Platforms is leveraging artificial intelligence (AI) to enhance content recommendations and ad performance, contributing to an estimated $60 billion annual run rate for its AI-powered advertising tools. In Q3 2025, Meta’s average ad price rose by 10% year-over-year, bolstered by increased demand and engagement driven by AI. The company anticipates total revenues for Q4 2025 to be between $56-59 billion, with a Zacks Consensus Estimate of $58.4 billion, reflecting a 20.7% increase from the previous year.
Meta’s capital spending is projected to rise significantly, now estimated to be between $70 billion and $72 billion for 2025, up from earlier guidance. Meanwhile, competitors like Alphabet and Amazon are also integrating AI to enhance their advertising platforms, with Amazon’s advertising revenue reaching $17.7 billion in Q3 2025, a 24% increase year-over-year.
Despite these innovations, Meta faces fierce competition in the advertising space, with the company’s stock showing an 11.3% increase over the past year, compared to a 24.6% rise in the broader technology sector. The Zacks Consensus Estimate for Meta’s Q4 2025 earnings is $8.16 per share, representing a 1.75% growth year-over-year.
