"Meta Platforms ( NASDAQ:META ) had been trading near its 52-week low in early January 2026, as investors worried about its heavy reliance on advertising for 98% of revenues, making earnings volatile compared to its diversified peers. Additional concerns included massive losses in Reality Labs exceeding $70 billion since 2021, with a $4.43 billion operating loss in the third quarter, and recent workforce cuts of over 1,500 jobs."
"The Q4 report highlighted robust performance in Meta's core operations. Total revenue rose 24% year over year, driven by a 24% increase in advertising revenue to $58.1 billion. Ad impressions grew 18%, while average price per ad increased 6%, reflecting effective AI enhancements in targeting and product recommendations. Daily active users across the family of apps reached over 3.5 billion, supporting sustained engagement, while operating income hit $24.7 billion with a 41% margin, underscoring Meta's efficiency in the advertising business despite rising costs."
Meta Platforms traded near its 52-week low in early January 2026 amid investor concern over dependence on advertising, which accounts for 98% of revenues and makes earnings more volatile than diversified peers. Reality Labs posted losses exceeding $70 billion since 2021, including a $4.43 billion operating loss in Q3, while the company cut over 1,500 jobs. Free cash flow was projected to fall 53% in 2026 as capital expenditures topped $100 billion focused on AI without immediate external revenue. European antitrust probes, including an investigation into WhatsApp's AI policy, pressured valuation that lagged hyperscaler peers. Q4 results beat estimates and showed strong ad growth and guidance.
Read at 24/7 Wall St.
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