To The Moon

$Meta Platforms, Inc.(META)$ is scheduled to release its fiscal Q1 2025 earnings report after the market close on next Wednesday (30 April). Operating Margin: Expected to decrease significantly to approximately 32.5%, down from 43.1% in Q4 2024, reflecting the impact of heavy investments. Revenue: Expected around $41.35 billion to $41.4 billion. This represents a healthy year-over-year (YoY) growth of about 13.5-13.6%. However, this marks a noticeable deceleration from the 20.6% growth seen in Q4 2024. Earnings Per Share (EPS): Forecasts are clustered around $5.21 to $5.29. This indicates YoY growth of roughly 11-12%, but like revenue, it's expected to be the slowest EPS growth rate since Q1 2023. Tipranks consensus estimate for the EPS is looking at $5.24. Meta Platforms (META) Positive Earnings Call Saw Share Price Declined By 19.03% META had a positive earnings call on 29 Jan 2025, but its share price had declined by 19.03%. The earnings call highlighted significant revenue growth, strong performance in ad revenue, and user growth in Meta AI and Threads. However, there are notable challenges such as high operating losses in Reality Labs, increased infrastructure costs, and ongoing regulatory headwinds. Despite these challenges, the overall sentiment leans towards optimism due to robust financial performance and strategic growth areas. Meta Platforms (META) Guidance During Meta's fourth quarter and full-year 2024 earnings call, several key metrics and guidance for the upcoming year were highlighted. The company reported a Q4 total revenue of $48.4 billion, marking a 21% increase year-over-year, with total expenses at $25 billion, up 5%. Meta's operating income was $23.4 billion with a 48% operating margin, and net income reached $20.8 billion. The company ended the year with $77.8 billion in cash and marketable securities. Meta's daily user engagement surged, with over 3.3 billion people using at least one app daily. The company expects 2025 revenue to reach between $39.5 billion and $41.8 billion in Q1, with full-year expenses projected between $114 billion and $119 billion. Capital expenditures for 2025 are anticipated to be in the range of $60 billion to $65 billion, driven by investments in generative AI, core business infrastructure, and an increase in technical talent hiring. Meta aims to expand its AI capabilities, planning to scale its Meta AI usage which already boasts over 700 million monthly active users, and continues to innovate with products such as AI-powered Ray-Ban glasses and the Llama 4 AI model. The company is also focused on enhancing monetization efficiency, with initiatives like Advantage+ shopping campaigns contributing to a $20 billion annual revenue run-rate. Summary While Meta is expected to report solid YoY growth for Q1, the narrative is shifting towards the rate of deceleration in both revenue and earnings growth. The key focus will be on management's commentary regarding advertising trends (especially the impact of Chinese advertisers), the justification for the enormous AI-related capital expenditures, the outlook for operating margins, and, most importantly, the forward guidance provided for Q2 and the rest of 2025. Appreciate if you could share your thoughts in the comment section whether you think META would live up to its solid YoY growth, so now I need help to see if META can focus on the shift to beijing hotel or nearly. @TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts. Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.