Meta Platforms (NYSE: META) is the latest tech company to release its Q1 earnings this week.
META – Daily Chart
The price of META is mirroring other tech stocks with a slump in 2025, finding key support. This could mark a technical correction in the price of technology stocks and investors can compare the releases to see which company surprised the most.
Meta has launched a standalone ChatGPT competitor on Tuesday, making its most direct move to compete with Microsoft. The app has been built on Meta’s llama models and features on AI assistant and image generation, similar to recent roll-outs from Google’s Gemini and xAI’s Grok.
Meta’s financial results are released after the market closes on Wednesday and they will be closely watched to see how effectively the company is spending its $60-65bn AI infrastructure investment.
Analysts expect the company to post $5.21 in earnings per share with $41.2bn in revenue, marking a 13% increase from a year ago.
The next issue is tariffs and the impact on Meta’s advertising spend income. May 2 brings the end to an exemption that has shielded companies like Temu and Shein from rising costs.
“Second-half visibility is murky, and the tariff shift may only amplify uncertainty”, said CFRA’s Angelo Zino. Other analysts believe Meta’s scale will buffer any slowdown.
“Meta is more resilient than peers”, said Baird’s Ted Mortonson, highlighting the company’s 3.4bn monthly users.
Meta has managed to beat EPS estimates four quarters in a row and any uptick in monetisation of generative AI could boost the stock. On Wall St, 88% of analysts rate the stock a buy with a price target of around $707 on average.
