"Meta's advertising engine generated $58.1 billion in Q4 2025 ad revenue, up 24% year over year, while 3.58 billion people used at least one Meta app daily."
"The stock trades at a trailing P/E of 27x and a forward P/E of 21x, with a PEG ratio of just 0.84, indicating a reasonable valuation for its business quality."
"Meta guided 2026 capital expenditures of $115 to $135 billion, up from $69.7 billion in 2025, which is compressing returns and impacting operating margins."
Meta Platforms has seen a 9% pullback from its YTD high, despite strong earnings and a 28% increase since its YTD low. The company operates a vast social media ecosystem, generating $58.1 billion in Q4 2025 ad revenue, with 3.58 billion daily users. Advertising growth remains robust, with ad impressions up 18% and average prices rising 6%. However, significant capital expenditures for 2026 could impact profitability, as operating margins have already declined and free cash flow has decreased despite rising operating cash flow.
Read at 24/7 Wall St.
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