Meta Platforms Stock: Down About 17% in 6 Months, Is This a Good Buy-the-Dip Moment? | The Motley Fool

"Meta's core advertising engine continues to produce staggering growth. In the fourth quarter of 2025, revenue rose 24% year over year to $59.9 billion. This top-line momentum was driven by strong user engagement, with ad impressions delivered across the company's family of apps increasing 18% year over year. Notably, this represented an acceleration from the 14% impression growth Meta posted in Q3."

"Underpinning this growth is a massive and expanding audience. The company reported that its total daily active users across its apps averaged 3.58 billion in December, up 7% from a year earlier. Management expects its strong business momentum to continue, guiding for first-quarter 2026 revenue between $53.5 billion and $56.5 billion."

"Earnings per share grew slower as the company is reinvesting in its business aggressively. Specifically, Meta's fourth-quarter earnings per share rose 11% year over year to $8.88. But this is impressive considering that costs and expenses for the period rose 40% year over year."

Meta Platforms experienced significant revenue growth in Q4 2025, with advertising revenue rising 24% year-over-year to $59.9 billion. The company's core advertising engine demonstrated strength through increased user engagement, with ad impressions growing 18% year-over-year and accelerating from prior quarter performance. Daily active users across Meta's apps reached 3.58 billion, up 7% annually. Despite slower earnings-per-share growth of 11% due to aggressive business reinvestment, the company's costs and expenses rose 40% year-over-year. Management projects continued momentum with Q1 2026 revenue guidance between $53.5 billion and $56.5 billion, implying approximately 30% year-over-year growth. The recent 17% stock decline reflects investor concerns about capital-intensive AI infrastructure investments.

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