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Key Stats for META Stock
- Price Change for META stock: +11%
- Current Share Price: $775
- 52-Week High: $775
- Meta Platforms Stock Price Target: $756
What Happened?
Meta (META) stock surged over 11% today after the social media giant delivered a blowout second-quarter earnings report that exceeded Wall Street expectations across all key metrics.
It posted earnings per share of $7.14 versus the $5.86 consensus estimate, while revenue of $47.52 billion crushed expectations of $44.84 billion, representing 22% year-over-year growth.
The standout performance was driven by Meta’s advertising business, which generated $46.56 billion in revenue, well above the $43.97 billion expected.
CEO Mark Zuckerberg attributed the strength to AI improvements that “unlocked greater efficiency and gains across our ad system,” with new AI-powered recommendation models driving roughly 5% more ad conversions on Instagram and 3% on Facebook.
Meta announced the establishment of “Meta Superintelligence Labs” with massive infrastructure investments, including plans for the world’s first gigawatt-plus compute cluster called “Prometheus” and a 5-gigawatt “Hyperion” cluster.
Meta raised its capital expenditure guidance to $66-72 billion for 2025, up from the previous $64-72 billion range, signaling aggressive AI investments ahead.
See analysts’ growth forecasts and price targets for META (It’s free!) >>>
What the Market Is Telling Us About META Stock
Investors are clearly enthusiastic about Meta’s ability to successfully monetize AI investments in its core advertising business while positioning for future growth opportunities.
The company’s guidance for third-quarter revenue of $47.5-50.5 billion exceeded Wall Street’s $46.14 billion estimate, demonstrating continued momentum.
Meta’s announcement that it reached over 1 billion monthly active users for Meta AI, combined with accelerating engagement (5% increase in time spent on Facebook, 6% on Instagram), shows the company is successfully integrating AI to drive user engagement and advertiser value.
With daily active people across Meta’s family of apps growing to 3.48 billion and strong international growth (24% in Europe, 23% in Rest of World), the stock appears well-positioned to benefit from both AI advancements and global expansion.
The massive infrastructure investments, while costly, signal Meta’s commitment to maintaining AI leadership and capturing the superintelligence opportunity that Zuckerberg believes is “now in sight.”
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
