"Meta Platforms is likely to deliver one of the most closely watched quarterly reports of the upcoming earnings season. With the company spending heavily to transition the social media giant into a more artificial intelligence (AI)-focused operation, investors will have all the more reason to focus on the " Magnificent Seven" stock. Investors might recall the 20% gain in the stock following the release of the February 2024 numbers."
"Nonetheless, that rate of increase is likely to slow down over time. To remedy that, the company has pivoted aggressively into artificial intelligence (AI). It hopes to leverage its massive amount of data to train AI models with unique personal data that competitors cannot access. To this end, it pledged to spend between $66 billion and $72 billion in capital expenditures (capex) in 2025 alone."
Meta operates Facebook, Instagram, Threads, WhatsApp and other platforms with nearly 3.5 billion daily users, about 42% of the global population. User growth slowed to roughly 6% annually, suggesting saturation risk, while advertising revenue rose 19% year over year in the first half of 2025. The company is pivoting aggressively into AI to leverage proprietary personal data and train unique models, backing that pivot with a 2025 capex pledge of $66–$72 billion. Legacy advertising businesses remain the primary financial drivers for now, and the stock has shown substantial volatility around quarterly reports.
Read at The Motley Fool
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