"Meta Platforms has been a big winner in the AI era, up 8x since the stock bottomed out in 2022, and its latest results delighted investors. Revenue jumped 24% in the fourth quarter to $59.9 billion. Ramped-up spending weighed on margins, but investors had expected that, and net income still rose 9% to $22.8 billion, or $8.88 per share. Looking ahead, Meta also issued better-than-expected revenue guidance for the first quarter,"
"In addition to the strong headline numbers, Meta is on the verge of a milestone that few would have thought possible five or ten years. Its advertising revenue could surpass that of Alphabet's Google Search as soon as this year. Here's how. Meta stakes its claim to the advertising throne Nearly all of Meta's revenue comes from advertising. It finished 2025 with $201 billion in revenue, of which $196.2 billion was from advertising."
Meta reported Q4 revenue of $59.9 billion, up 24%, and net income of $22.8 billion, up 9% ($8.88 per share). The company gave Q1 revenue guidance of $53.5–$56.5 billion, a 30% year-over-year increase including a 4% foreign-currency tailwind, implying the fastest quarterly growth in five years. Advertising accounted for $196.2 billion of $201 billion in 2025 revenue, with ad revenue up 22%. CFO Susan Li credited AI-driven ad improvements for stronger conversion growth. A projected ~28% ads growth could bring 2026 advertising revenue to about $251.1 billion, potentially overtaking Alphabet's Search ad revenue.
Read at The Motley Fool
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