Meta Shares Surge as Quarterly Earnings and Revenue Beat Expectations
Meta Platforms reported strong financial results for the second quarter of 2025, exceeding Wall Street forecasts on both earnings and revenue. The company's shares rose between 8% and 10% following the news.
Meta's revenue grew by 22% to $47.5 billion for the quarter ending June 30, while net income increased by 36% to $18.3 billion. Earnings per share came in at $7.14, higher than what analysts had expected. The number of daily active users climbed to 3.48 billion across Meta's family of apps.
The company's core advertising business remained robust, providing the main source of growth as Meta continues to invest heavily in artificial intelligence. Despite these investments, Meta narrowed its annual capital expenditures forecast, reflecting more focused spending as it pursues advancements in 'superintelligence' technology.
Meta's Reality Labs division, which works on virtual and augmented reality products, reported a $4.53 billion operating loss during the quarter. Sales in this segment reached $370 million.
Meta's stock increased because the company reported higher-than-expected earnings, revenue, and user growth for the second quarter of 2025.
The main driver is Meta's strong advertising business, which continues to attract users and generate revenue.
Reality Labs is Meta's division for virtual and augmented reality products. It is currently losing money as Meta invests heavily in developing new technologies in this area.
'Superintelligence' refers to developing advanced artificial intelligence. Meta is investing in AI research to improve its products and services.
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