Meta Platforms (NASDAQ:META) could highlight user growth and monetization efforts when the company reports fourth-quarter financial results after market close on Wednesday.
Here are the key earnings estimates, what experts are saying ahead of the report and the key items to watch.
Meta Q4 Earnings Estimates
Analysts expect Meta to report fourth-quarter revenue of $58.41 billion, up from $48.30 billion in last year's fourth quarter, according to data from Benzinga Pro.
The company has beaten analyst revenue estimates for 13 straight quarters.
Analysts expect Meta to report fourth-quarter earnings per share of $8.18, up from $8.02 in last year's fourth quarter.
The company has beaten analyst earnings-per-share estimates for 11 straight quarters.
Guidance from the company calls for fourth-quarter revenue to be in a range of $56 billion to $59 billion.
What Experts Are Saying About Meta Stock
Many analysts have been lowering their price targets on Meta stock ahead of the quarterly financial results. One analyst who kept their price target is Bank of America Securities analyst Justin Post, who maintained a Buy rating and $810 price target ahead of the fourth quarter results.
The analyst is expecting Meta to beat estimates, and investors are paying more attention to future expense guidance.
Post said Meta has several AI catalysts in the future and shares trade at a price-to-earnings multiple below the company's historical average.
"Concerns on '26 expenses have been building for 5 months & we think an expense guide at around 30% 2026 growth could be positive, while at/above 35% a negative," Post said.
The analyst said positive sentiment and valuation multiple could expand to Meta as the company launches new AI products.
"A broader rollout of fully automated ad campaigns remains a catalyst in 2026, with the potential to expand Meta's total addressable market and attract incremental ad spend."
Freedom Capital Markets Chief Market Strategist Jay Woods says Meta shares have been "punished for an increase in spending despite solid results."
Woods said Meta shares fell after third-quarter financial results due to a one-time large tax charge and guidance of higher capital expenditures to boost AI growth.
"Such spend had excited investors previously, but shareholders are now looking for returns on AI expenditures."
Woods said investors were "spooked" by Meta’s near-term profits rather than rewarding the spending that showed optimism about future AI growth.
"What is the future CapEx spend looking like and has their AI spend started to see a return on its investment?"
Here are recent analyst ratings on Meta stock and their price targets:
- Roth Capital: Maintained Buy rating, lowered price target from $845 to $800
- KeyBanc: Maintained Overweight rating, lowered price target from $875 to $835
- Wells Fargo: Maintained Overweight rating, lowered price target from $795 to $754
- Stifel: Maintained Buy rating, lowered price target from $875 to $785
- Jefferies: Reiterated Buy rating, maintained price target of $910
Key Items to Watch for Meta's Q4 Earnings Results
Key figures like earnings per share, revenue, and social media users will be among the items investors and analysts are looking at when Meta reports results on Wednesday.
The company reported its Family daily active people were up 8% year-over-year in the third quarter, ending at 3.54 billion. The company continues to monetize its large user base with ad impressions and the average price per ad up in the third quarter.
Investors will be watching these key figures for advertising once again.
Meta CEO Mark Zuckerberg previously said the company expects its 2026 capital expenditure dollar growth to be larger in 2026 than in 2025, with total expenses growing "at a significantly faster percentage rate" in 2026. Investors and analysts are awaiting an update to see if this commentary still rings true today.
With all four quarters of the last fiscal year now behind, Meta could share more details on guidance for 2026 along with the spending commentary. The guidance and CapEx commentary will likely drive the price direction of shares after earnings.
Other items to watch include more monetization opportunities and Threads growth.
A new report says Meta is preparing new paid tiers for Instagram, Facebook and WhatsApp. The paid tiers would come with enhanced user controls and exclusive AI features.
These free platforms mostly monetize users through advertising. Adding paid tiers could increase revenue for the company and also help recoup some of the investments made in AI tools.
Threads’ daily user counts have passed X on mobile apps, according to a report. While X still beats Threads on the web, the strong mobile use of Threads could set Meta up for more monetization efforts and growth opportunities for the growing social media platform.
The company has highlighted Threads and its user growth in recent earnings reports and could choose to do so once again on Wednesday.
Meta is one of the largest holdings in the SPDR S&P 500 ETF Trust (NYSE:SPY) at 2.4% of assets and is also one of the largest holdings in the Roundhill Magnificent Seven ETF (BATS:MAGS). Both those ETFs could be volatile based on Meta's results and guidance.
Meta Stock Price Action
Meta stock trades at $666.92 on Tuesday, versus a 52-week trading range of $479.80 to $796.25. Meta shares are up 1% over the last 52-weeks.
Photo: Shutterstock
