Meta Platforms Sees Resurgence in Ad Revenue: Future Growth Potential Explored

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Meta Platforms reported a significant increase in advertising revenues in Q3 2025, accounting for 98.6% of its Family of Apps revenues with $50.08 billion generated, up 25.6% year over year. This growth surpassed previous quarters, indicating strong demand driven by improved ad performance and AI optimization in ad ranking systems. The average price per ad rose by 10%, while the number of ad impressions increased by 14% across all regions.

In comparison, Alphabet and Amazon also saw growth in their advertising revenues, with Alphabet reporting $74.18 billion overall, a 12.6% increase, and Amazon at $17.7 billion, increasing 24% year over year. Meta, together with these competitors, is expected to capture more than 50% of global ad spending in 2026.

Meta’s stock performance saw an 11.6% increase over the past 12 months, with a current forward price/sales ratio of 6.96X, exceeding the broader sector average of 6.61X. The consensus estimate for 2025 earnings stands at $28.17 per share, reflecting an 18.1% year-over-year growth.

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