Meta (NASDAQ: META) just reminded everyone why it’s still one of the most dominant forces in tech. After their Q2 2025 earnings dropped, the stock surged over 11% in a single day — and in my opinion, they’ve earned it.
I’ve been holding Meta for a while now, and after digging into their latest results, I’m even more confident about keeping them in my portfolio. Here’s my breakdown of what happened, why the numbers impressed me, and where I think the stock is headed.
📊 Q2 2025 Earnings: The Highlights
Let’s start with the numbers, because they tell most of the story.
- Revenue: $47.52 billion, up 22% year‑over‑year and well above analyst expectations.
- Net Income: $18.34 billion, up 36% from last year.
- EPS: $7.14, beating consensus estimates of around $5.85–$5.88 — that’s a 38% jump.
- Operating Margin: 43%, with operating income up 38%.
- Daily Active Users: ~3.48 billion across Facebook, Instagram, WhatsApp, and Messenger — up 6% YoY.
- Ad Growth: Ad impressions rose 11% and the average price per ad climbed 9%.
- Capital Spending: $17 billion in Q2 alone, much of it going toward AI infrastructure and data centers.
- Shareholder Returns: $9.76 billion in buybacks and $1.33 billion in dividends.
- Q3 Guidance: Forecasting $47.5 billion–$50.5 billion in revenue, well above the ~$46.1 billion consensus.
For me, the revenue beat, strong user growth, and aggressive AI investment stood out the most. The market clearly agreed — hence the double‑digit stock pop.
📈 How Meta Has Been Performing
This wasn’t just one great quarter — Meta has been outperforming for a while now.
- Year‑to‑date: +29%–30%
- Past 12 months: +63% (compared to ~15% for the S&P 500)
- Last 5 years: +205% (more than double the S&P’s performance)
And it’s not just price action. Meta has been consistently beating earnings estimates since Q4 2023. That kind of track record tells me this is a company with both strong execution and realistic guidance.
🤖 The AI Factor
One of the biggest reasons I’m bullish is Meta’s push into AI. They’re not just dabbling in it — they’re spending tens of billions on infrastructure, poaching top talent from companies like OpenAI and Google, and building a serious AI research footprint.
This investment isn’t just about the future; it’s already paying off. Their ad targeting and content recommendations are becoming even more effective, which directly impacts revenue growth.
📉 Valuation Check
Valuation-wise, Meta is sitting in what I’d call the “reasonable for a high‑growth tech stock” range.
- Forward P/E: Mid‑20s
- Trailing P/E: Around 28
- EV/EBITDA: ~18×
- PEG ratio: ~1.6–1.7 (right around fair value)
These aren’t bargain‑basement numbers, but for a company growing at this pace, they’re very reasonable.
🏢 Is Meta a Well‑Run Company?
From what I see — yes.
They’re one of the best places to work in tech according to Glassdoor, with a 3.88/5 rating and 66% of employees recommending them to a friend. Not perfect, but solid for a company of this size and public scrutiny.
When you combine a strong culture with elite technical talent, it’s easier to sustain the kind of growth we’ve been seeing.
💡 My Take: Still a Buy
I’ve owned Meta for about a year now and I’m sitting on a 65%–70% gain. Even after that run, I’m not selling.
Here’s why:
- Strong fundamentals (revenue, EPS, margins)
- Massive user base that’s still growing
- Leadership in online advertising
- Aggressive, focused AI strategy
- Reasonable valuation for the growth
Sure, it’s not a high‑dividend play — the yield is tiny — but that’s not why I’m here. I view Meta as a growth stock suited for long‑term investors who want exposure to both the social media ecosystem and the AI boom.
🚫 Not Financial Advice
This is just my personal opinion based on my own research and portfolio. Your situation, risk tolerance, and investment goals might be totally different, so always do your own due diligence before buying or selling any stock.