Meta has exceeded Wall Street’s expectations with a record-breaking performance in its fourth-quarter earnings for 2024. The company reported a 21% year-over-year increase in revenue, reaching $48.6 billion, alongside a 49% jump in profit, which surged to $20.8 billion. These figures were significantly higher than analysts’ forecasts, which predicted earnings of $6.75 per share on $46.9 billion in revenue, according to Bloomberg estimates.
A key driver behind Meta’s strong results was a rise in social media engagement across its major platforms—Facebook, Instagram, and WhatsApp. Daily active users across these services rose to 3.35 billion, up from 3.29 billion in the previous quarter, demonstrating the company’s ongoing appeal to users globally.
Meta’s exceptional Q4 earnings are also supported by its plans for substantial investment in generative AI technology in the coming year. The company has announced that its capital expenditures (capex) will increase significantly, fueling the development of AI capabilities and further enhancing its product offerings in the social media and technology sectors.
Looking ahead, CEO Mark Zuckerberg expressed optimism about Meta’s future growth, particularly with the continued advancements in AI, smart glasses, and evolving social media trends. Meta forecasts revenue growth of up to 18% for 2025 and expects first-quarter revenue to fall between $39.5 billion and $41.8 billion. The company also expects total expenses for the year to range from $114 billion to $119 billion, with capex projected to be between $60 billion and $65 billion. A significant portion of this increase in expenses will go toward infrastructure investments, including the expansion of generative AI efforts and the scaling of core business operations.
Meta’s market value currently sits at $1.71 trillion, and its stock saw a modest gain of 0.32%, trading at $676.49 following the earnings announcement.
References:
- Meta Q4 Earnings Report, 2024
- Bloomberg
