Overview

Meta Platforms (META), the parent company of Facebook, Instagram, and WhatsApp, is on the brink of reporting its first-quarter earnings, scheduled for release after market hours this Wednesday. Analysts exhibit a positive outlook, projecting notable growth in both revenue and profits.

Analyst Expectations

According to a report from Visible Alpha, of the 27 analysts following the stock, 25 have rated it as a “buy,” while only 2 maintain a “hold” position. The average target price for Meta shares hovers around $695, indicating a potential increase of approximately 27% from its recent closing price of around $547.

Predicted Financial Performance

Market expectations are high, with predictions estimating an earnings per share (EPS) of $5.24 and revenue totaling $41.35 billion. This would reflect year-over-year growth of 11% in EPS and 13% in revenue, respectively.

Advertising Market Concerns

A recent analysis from Morgan Stanley points out potential risks for Meta from a decline in advertising expenditure, particularly due to tariffs affecting Chinese companies. However, analysts believe Meta may better endure these pressures compared to its primary competitors, Alphabet (GOOGL) and Amazon (AMZN).

Regulatory and Legal Challenges

Meta continues to face scrutiny from regulators, which has significantly impacted its operations. Just this week, the European Union imposed a fine of €200 million (approximately $227.5 million) for non-compliance with its Digital Markets Act. Meta has indicated plans to appeal this decision.

Additionally, the company is embroiled in an antitrust trial initiated by the Federal Trade Commission (FTC), which is seeking to compel Meta to divest either Instagram or WhatsApp. The FTC alleges that Meta engaged in an “illegal buy-or-bury” strategy to suppress competition from innovative startups.

Stock Performance

In 2025, Meta’s stock has experienced a decline of approximately 7%. This downturn has been part of a larger trend, as the tech giant has lost about 25% of its market value since February, when it reached an all-time high exceeding $740. Market volatility has severely affected many leading technology companies, commonly referred to as the “Magnificent Seven.”