The stock of Meta Platforms (META) is up 10% after the technology giant reported second-quarter financial results that blew past Wall Street forecasts.
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The company known for its social media platforms such as Facebook and Instagram announced earnings per share (EPS) of $7.14, which topped the $5.92 expected among analysts. Revenue in the quarter totaled $47.52 billion, which was ahead of the $44.80 billion forecast on Wall Street.
In terms of guidance, Meta said that its sales in the current third quarter will range from $47.5 billion to $50.5 billion, ahead of Wall Street estimates that called for revenue of $46.14 billion. The company added that its capital expenditures will be between $66 billion and $72 billion, which is an increase from previous estimates of $64 billion to $72 billion.
Meta Platforms’ income statement. Source: Main Street Data
AI Initiatives
Meta earlier in the day had outlined its vision for what it calls “AI superintelligence.” And while the company continues to spend heavily on artificial intelligence, its Reality Labs division that is focused on the so-called “metaverse” as well as some AI technologies continues to lose money.
In Q2 of this year, Reality Labs posted an operating loss of $4.53 billion while recording $370 million in sales during the period. Analysts were projecting that the unit would post a second-quarter operating loss of $4.99 billion while generating $381 million in sales. However, sales of Meta’s Ray-Ban smart glasses more than tripled year-over-year during the first half of 2025, racking up a win for the Reality Labs unit.
Is META Stock a Buy?
The stock of Meta Platforms has a consensus Strong Buy rating among 45 Wall Street analysts. That rating is based on 41 Buy and four Hold recommendations issued in the past three months. The average META price target of $761.55 implies 6.12% upside from current levels. These ratings are likely to change after the company’s financial results.
