"Meta just finished 2025 with fourth-quarter revenue up 24% year over year to $59.9 billion. But the stock is trading as if investors couldn't care less about the underlying business momentum, and are more focused on Meta's spending plans."
"Ad impressions across Meta's Family of Apps rose 18% year over year in the fourth quarter, and average price per ad increased 6%. And total daily active users across its apps averaged 3.58 billion in December, up 7% year over year, and demonstrating why advertisers love Meta's platforms: it comes with an enormous base of engaged users."
"Meta's business remains extremely profitable, with its family of apps business (primarily advertising) producing operating income of $30.8 billion in the fourth quarter -- enough to more than offset the company's cash-draining Reality Labs business segment, which posted an operating loss of $6.0 billion."
Meta Platforms generated $201 billion in revenue during 2025, representing 22% year-over-year growth, with fourth-quarter revenue reaching $59.9 billion, up 24% annually. The company's advertising business remains robust, driven by 3.58 billion daily active users and 18% growth in ad impressions. Operating income from the Family of Apps reached $30.8 billion in Q4, substantially offsetting Reality Labs' $6 billion operating loss. Despite generating $43.6 billion in free cash flow during 2025, Meta's stock has underperformed the S&P 500, declining 3% year-to-date in 2026 and returning only 13% in 2025 versus the index's 18%. Investor concerns center on the company's $72.2 billion capital expenditure commitment for AI infrastructure development.
#meta-stock-performance #ai-capital-spending #advertising-revenue-growth #investor-sentiment #cash-flow-generation
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