metaMeta's Q1 2025 profits and Q2 projections have restored investor confidence and raised the value of the Meta shares in after-hours trading.Skerdi
Quick overview
- Meta’s Q1 2025 earnings report showed a 35% increase in net income and a 16% rise in revenue, exceeding analyst expectations.
- Despite earlier declines due to regulatory pressures, Meta’s stock rebounded in after-hours trading, indicating renewed investor confidence.
- The company reported strong advertising revenue, which accounted for 98% of total revenue, and provided optimistic Q2 revenue guidance.
- While Reality Labs continues to incur significant losses, Meta’s overall performance and user growth suggest a positive outlook for future revenue.
Live META Chart
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Despite a rocky beginning for the META share price, investor trust has been restored by Meta’s Q1 2025 earnings, which have increased the Meta stock’s value in after-hours trading.
Momentum Returns for META After Q1 Earnings Results
Meta Platforms (META) began the trading day with a bearish tone, opening with a downside gap as market sentiment remained cautious. However, as anticipation built ahead of the company’s earnings release, the stock clawed back early losses, ultimately ending the regular U.S. session flat.
The real action began after the bell. Meta posted a robust first-quarter performance, with net income jumping 35% and revenue climbing by 16% year-over-year to $42.3 billion—figures that came in well above analyst expectations. The strong report sparked a surge in after-hours trading, pointing to a potential bullish open in the next session.
From Peak to Pullback: META’s Technical Journey
Earlier in the year, Meta shares reached an all-time high of $740.91 in early February, fueled by optimism around its advertising rebound and artificial intelligence integration. But by mid-April, the stock had fallen sharply, dipping below $480—a drawdown of over 35%—as market-wide sentiment soured and investors grew increasingly concerned about regulatory overhangs.
Meta Stock Chart Weekly – Pushing Above the 50 SMA 
Specifically, Meta’s messaging platform WhatsApp came under heightened scrutiny in Europe after surpassing the 45 million active user threshold, which triggered tighter compliance under the EU’s Digital Markets Act. The resulting regulatory pressure added to the downward drift in Meta’s share price, which bottomed near $641.43 before stabilizing.
Technically, the decline saw the 50-week simple moving average (SMA) turn into a resistance level, while the longer-term 100-week SMA acted as a cushion of support. The post-earnings recovery now places the stock back above the 50-week SMA, a positive technical signal that could invite further upside.
Meta Q1 2025 Earnings Highlights (Jan–Mar)
- Revenue: $42.31 billion, +16% YoY; beat analyst expectations of $41.22 billion.
- Net income: $16.64 billion, +35% YoY — second-highest in Meta’s history after Q4 2024.
- Earnings per share (EPS): $6.43, well above analyst projection of $5.22 (Zacks).
- Advertising revenue: Accounted for 98% of total revenue; average ad price rose 10% YoY.
Geographic performance:
- Sales increased in Asia-Pacific and “Rest of World.”
- Declined slightly in the U.S. and Europe.
- Daily Active Users: Rose 6% YoY to 3.43 billion across platforms (Facebook, Instagram, WhatsApp, Threads).
- Q2 revenue guidance: Estimated between $42.5B and $45.5B, above Wall Street’s $39.1B forecast.
- Capital Expenditures: Surged to $13.69 billion, more than double YoY — largely for AI-focused data center buildout.
Reality Labs:
- Reported Q1 loss of $4.21 billion.
- Continues to be a drag on earnings; lost $17.5B in 2024 alone.
Meta delivered a strong Q1, beating estimates across the board with standout profit and robust advertising strength. While Reality Labs continues to post heavy losses, investor sentiment remains buoyed by healthy user growth, AI infrastructure investment, and upbeat Q2 revenue guidance.
Looking Ahead: Revenue Momentum and Market Repricing
Investor sentiment has been further boosted by Meta’s upbeat outlook for the second quarter. The company signaled confidence in its core advertising business while continuing to invest in its AI initiatives and monetization efforts across Facebook, Instagram, and WhatsApp. The latest results reflect not only a bounce-back in advertising revenue but also an encouraging trajectory for Meta’s diversified revenue streams.
Conclusion
Meta’s better-than-expected Q1 2025 earnings have helped reverse recent weakness tied to regulatory concerns and market volatility. With shares rebounding in after-hours trading and the stock reclaiming a key technical level, the tone has shifted decisively more bullish. Investors will now watch whether this momentum can carry through into the next session and into Q2, where Meta’s guidance suggests continued revenue strength ahead.
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank’s local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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