Will Higher Ad Revenues Aid Meta Platforms in Q2 Earnings?

Meta Platforms’ META second-quarter 2025 results, set to be reported on July 30, are expected to reflect the benefits of higher advertising revenues.

The Zacks Consensus Estimate for Meta Platforms’ second-quarter advertising revenues is pegged at $43.94 billion, indicating growth of 14.6% year over year.

Meta Platforms’ earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 17.3%. 

Click here to learn how Meta Platforms’ overall second-quarter performance is likely to be.

Strong Ad Spending to Aid META’s Q2 Top Line

META’s staggering reach and increasing ad impressions (up 5% year over year in the first quarter of 2025) make it one of the most important players in the digital ad sales market, apart from Alphabet GOOGL, Amazon AMZN, ByteDance and Alibaba BABA. 
 

Meta Platforms, Inc. Revenue (TTM)

Meta Platforms, Inc. revenue-ttm | Meta Platforms, Inc. Quote

According to EMARKETER, global ad spending is expected to exceed $1 trillion, with 75% going to digital in 2025. In terms of ad revenues, Alphabet is estimated to hit $209.15 billion while Amazon $69.30 billion in 2025. Meta Platforms is expected to hit $183.8 billion. While ByteDance is expected to generate $60.54 billion, Alibaba is anticipated to generate $42.23 billion. The strong momentum in spending is expected to have benefited META’s ad revenues in the to-be-reported quarter.

In the recently concluded second quarter of 2025, Alphabet’s Google advertising revenues rose 10.4% year over year to $71.34 billion and accounted for 74% of total revenues. Search and other revenues accounted for 56.2% of total revenues. YouTube’s advertising revenues improved 13.1% year over year to $9.77 billion, beating the consensus mark by 2.9%.

Meanwhile, Amazon’s advertising business benefits from powerful network effects as more sellers and brands compete for visibility, driving higher pricing and improved margins. With more than 200 million Prime Video viewers globally and expanding connected TV advertising capabilities, Amazon captures growing digital advertising budgets shifting from traditional media channels. The Zacks Consensus Estimate for Amazon’s advertising services is pegged at $14.9 billion, suggesting 16.7% from the figure reported in the year-ago quarter.

Meta Platforms’ focus on improving ad ranking and measurement by leveraging AI has been a key catalyst driving advertisers’ return on investment. META has been leveraging AI and machine learning to boost the potency of WhatsApp, Instagram, Facebook and Threads. Effective usage of AI has been helping the company keep its users engaged. AI-driven feed recommendations have been a key catalyst. Meta Platforms is committed to prioritizing user safety and well-being through initiatives to enhance parental supervision, messaging privacy, and time management on its platforms. These factors are expected to have driven user base growth in the second quarter of 2025.

META’s Ad Revenue Estimates Show Strong Growth Trend

The Zacks Consensus Estimate for advertising revenues in Asia-Pacific is pegged at $8.71 billion, indicating year-over-year growth of 12.8% in the second quarter of 2025. The consensus mark for advertising revenues in Europe, the United States and Canada, and the Rest of the World is pegged at $10.52 billion, $19.59 billion and $5.89 billion, respectively, indicating 15.2%, 26.8% and 20.7% growth.

The consensus mark for Family Daily Active People or DAP, defined as a registered and logged-in user who visited at least one of the Family products (Facebook, Instagram, Messenger or WhatsApp) on a given day, is expected to be 3.35 billion for the second quarter of 2025.

Zacks Rank & Upcoming Earnings

Meta Platforms currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Amazon, another Zacks Rank #1 company, is set to report second-quarter 2025 earnings results on July 31.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research