Meta Platforms (NASDAQ:META) Crushes Q4-2024 Earnings Estimates, Stock Rises
Meta Platforms (NASDAQ: META) reported fourth-quarter earnings that surpassed analyst expectations, driven by robust ad revenue growth and continued strength in its AI and monetization efforts.
The company posted EPS of $8.02, significantly beating estimates of $6.76, and marking a 50% year-over-year increase from $5.33 in Q4 2023. Revenue also came in ahead of forecasts at $48.39 billion, surpassing the expected $46.99 billion and growing 21% year-over-year from $40.11 billion in the same quarter last year.
Meta’s Strong Growth Fueled by AI and Advertising Expansion
CEO Mark Zuckerberg expressed optimism about the company’s future, stating, "We continue to make good progress on AI, glasses, and the future of social media. I'm excited to see these efforts scale further in 2025."
Meta’s advertising business continued to perform well, with ad impressions across its platforms increasing 6% in Q4, while the average price per ad rose 14% year-over-year. This helped drive full-year revenue growth of 22%, bringing total 2024 revenue to $164.50 billion.
Operational and Financial Highlights
Operating income surged 43% year-over-year to $23.37 billion, while the operating margin expanded to 48% from 41% in Q4 2023.
Net income grew 49% to $20.84 billion for the quarter, and 59% for the full year to $62.36 billion.
Free cash flow reached $52.1 billion for Fiscal 2024, reflecting strong financial discipline and efficiency.
Despite increased investments in AI and infrastructure, total expenses grew at a slower pace, rising only 5% year-over-year in Q4 to $25.02 billion.
Meta's Capital Expenditures and Shareholder Returns
Meta continues to prioritize AI and infrastructure investments, with capital expenditures totaling $14.84 billion in Q4 and $39.23 billion for the full year. Looking ahead, Meta reaffirmed its 2025 capital expenditures guidance of $60-65 billion, signaling its commitment to AI-driven expansion despite industry concerns related to emerging AI competition, such as DeepSeek.
Shareholder returns remained a priority, with $29.75 billion in share repurchases for 2024, though no stock buybacks occurred in Q4. The company also distributed $5.07 billion in total dividends and dividend equivalents for the year.
2025 Outlook: AI and Monetization Expansion
Looking forward, Meta provided Q1 2025 revenue guidance of $39.5-41.8 billion, representing 8-15% year-over-year growth. The company expects full-year 2025 expenses to be between $114-119 billion, with the biggest increases coming from AI infrastructure, monetization efforts, Reality Labs, and compliance costs.
Meta also noted an active regulatory environment in the U.S. and EU that could impact its business, though it remains focused on delivering strong revenue growth throughout 2025.
Valuation: What Is META’s P/E Ratio Now?
In the last year, META generated $23.92 in adjusted EPS. At the current share price of $690 (in after-hours trading), this gives it a P/E ratio of 28.8.
You can use our free valuation calculators to help you determine if META stock is undervalued or overvalued.
A useful one you can use is our H-model calculator, which we’ve provided for free below. And if you don’t know how to use it, a comprehensive guide can be found here.
