Today's surge in Meta stock can be attributed to:
Meta's shares soared on Thursday, surging 2% at 12:15 p.m. ET and even reaching an impressive 5.1% increase earlier in the day. The stock's rise comes amid a generally positive market environment, with the S&P 500 gaining 0.2% and the Nasdaq Composite staying flat.
The stellar performance can be attributed to Meta's impressive Q4 2024 earnings report, which blew past expectations. Earnings per share ballooned by 50% year over year, reaching $8.02, significantly outpacing the predicted $6.76 per share. Revenue also reached an impressive $48.4 billion, just managing to surpass the expected $47 billion.
However, not everything was sunshine and roses. Meta's VR subsidiary, Reality Labs, continues to lose money, racking up an operating loss of $5 billion for the quarter. Despite this setback, Meta's future investment plans remain unchanged. The company is planning to spend over $60 billion in 2025, marking a substantial 60% increase from 2024.
Meta also gained some positive news off-site. The company has settled a lawsuit brought by former President Trump, forking over $25 million. This settlement, although a significant sum, represents a modest expense for a company that regularly makes hundreds of billions in a quarter.
Looking ahead, Meta seems poised to continue its expansion into AI and themetaverse. Despite the hefty investment costs, analysts are optimistic about the company's long-term growth prospects. Meta's strong earnings report and strategic focus on cutting-edge technologies have left analysts with a strong Buy consensus rating and an average price target of $695.44, representing a 2.80% upward trend from current levels.
In light of Meta's impressive earnings, individuals who have invested in the company's stocks might be seeing a significant return on their finance. Meta's future investment plans, including spending over $60 billion in 2025, indicate a strong commitment to finance growth, despite the losses in its VR subsidiary.
