Key Takeaways

Meta Platforms ( META ) is set to report its fourth-quarter results after the closing bell Wednesday, with analysts largely bullish on the tech giant's ability to build on a strong 2024 as its AI investments show some signs of paying off .

Meta's stock price rose by nearly two-thirds last year, “driven by revenue upside, strong cost discipline, and optimism on AI capabilities,” Bank of America analysts said Thursday. The analysts added they “remain positive on the stock in 2025,” given rising AI contributions to ad revenue, growing messaging revenue, and recent workforce reductions.

BofA reiterated a “buy” rating and raised its price target for the stock to $710 from $660. Overall, 26 of the 28 analysts covering Meta tracked by Visible Alpha have a “buy” or equivalent rating, with the remaining two issuing “hold” ratings. Their consensus price target is about $686, a roughly 6% premium over the stock’s record closing price Friday.

Analysts Expect Revenue and Earnings Growth—Along With Higher Spending on AI

Wall Street expects Meta to report fourth-quarter revenue of $47.02 billion, up 17% year-over-year . Earnings are projected to rise to $17.52 billion, or $6.75 per share, up from $14.02 billion, or $5.33 per share, a year earlier, even as Meta boosts spending on AI.

On Friday, CEO Mark Zuckerberg unveiled plans to invest $60 billion to $65 billion in capital expenditures this year , up from an estimated $38 billion to $40 billion in 2024 , as the tech giant expands its AI efforts.

Jefferies analysts suggested last week the short-lived TikTok ban in the U.S. earlier this month could also be a “ potential added tailwind ” in the current quarter, citing conversations with teens that indicated the ban drove some TikTok users to Instagram Reels.

Shares of Meta climbed 1.7% in Friday's session to close at an all-time high of $647.49, and have added close to 65% over the past 12 months.

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