Meta Q4 Earnings Disappoint, Revenue Growth Forecast Slows
Meta Platforms (META) reported mixed fourth quarter results on Wednesday, with earnings per share (EPS) beating estimates but revenue falling short.
Key Financial Metrics:
* Q4 EPS: $8.02 (vs. $6.75 estimate)
* Q4 Revenue: $48.4 billion (vs. $46.9 billion estimate)
* Full-year Net Income: $62.4 billion (up 59% YoY)
Guidance:
* Q1 Revenue: $39.5 billion-$41.8 billion (8%-15% YoY growth)
* No full-year revenue forecast provided
Challenges and Outlook:
Meta highlighted slowing revenue growth in the current quarter and announced plans to increase expenses in 2025. Expenses are projected to range from $114 billion to $119 billion, up from $95.1 billion in 2024. The company cited infrastructure costs, employee compensation, and investments in AI as key drivers of expense growth.
Investment in AI:
CEO Mark Zuckerberg emphasized Meta's commitment to AI, announcing plans to spend $60-$65 billion on AI infrastructure this year. The company sees AI as a significant growth opportunity and a key factor in shaping the future of social media.
Settlement with Donald Trump:
In a separate development, Meta reached a $25 million settlement with former President Trump over a lawsuit related to his suspension from Meta's platforms following the January 6, 2021 insurrection.
Stock Performance:
Meta shares initially fell 4% after hours trading but rebounded to trade up 1% near market close on Wednesday. The stock has been volatile in recent months amidst concerns about slowing growth and increased competition.