As the markets prepare for Meta Platforms’ (META) Q1 2025 earnings release, investors are eager to see how the company is navigating its challenges amid legal and regulatory hurdles. This Meta Q1 2025 earnings preview highlights expectations for the company’s growth despite uncertainties like tariffs and ongoing legal disputes.
Meta Q1 2025 Earnings Preview: Analysts Remain Bullish
Meta’s first-quarter results are set to be announced after the market close on Wednesday, and analysts continue to express optimism about the company’s future. Out of 27 analysts tracking the stock, 25 have a “buy” rating, with only 2 suggesting a “hold.” The consensus target price is around $687, representing a roughly 25% upside compared to the stock’s current level of about $550.
Meta, the parent company of Facebook, Instagram, and WhatsApp, is expected to report earnings per share of $5.24, along with $41.35 billion in revenue, marking an 11% and 13% increase, respectively, year-over-year.
Meta Q1 2025 Earnings Preview: Impact of Legal and Regulatory Pressures
Despite strong earnings forecasts, Meta faces significant legal and regulatory challenges. Recently, the European Union fined the company 200 million euros for violating the Digital Markets Act, with Meta announcing plans to appeal. Additionally, Meta’s ongoing antitrust trial with the Federal Trade Commission (FTC) is raising concerns, as the FTC pushes to have Instagram and WhatsApp sold or spun off, claiming that Meta engaged in anti-competitive behavior.
These issues have weighed on the stock, contributing to a 6% decline in Meta shares in 2025. The company’s market value has dropped by about 25% since reaching a peak of $740 in February. Despite this, many believe Meta remains well-positioned to weather the storm, especially in comparison to competitors like Alphabet and Amazon.
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Source: www.investopedia.com
