Meta’s stock climbed 10.4% intraday on Jan. 29, after the company reported stronger-than-expected results for the fourth quarter of fiscal 2025 on Jan. 28. Its total revenues increased by 24% year-over-year (YOY) to $59.89 billion, which was higher than the $58.59 billion that Wall Street analysts had expected.

However, this top line growth could only partially translate into bottom line gains, as Meta’s costs and expenses climbed 40% from the prior-year period. Meta’s EPS increased 11% YOY to $8.88, higher than the $8.23 that Street analysts had expected.

The daily active people (DAP) across its family of apps averaged 3.58 billion in December 2025, reflecting a 7% YOY increase. Fourth-quarter ad impressions over the family of apps increased by 18% from the prior-year period, while the average price per ad grew 6% YOY.

Meta’s revenue from its family of apps increased 25% YOY to $58.94 billion, while its Reality Labs segment’s revenue dropped by 12% YOY to $955 million. The latter segment is also accruing operating losses for the company. However, Meta’s total income from operations grew 6% YOY to $24.75 billion.

The company expects its full-year 2026 total expenses to range from $162 billion to $169 billion. The majority of expense growth is expected to be driven by infrastructure costs, including third-party cloud spend, higher depreciation, and higher infrastructure operating expenses. Capital expenditures, including principal payments on finance leases, are projected to be in the $115 billion–$135 billion range, driven by increased investment in Meta Superintelligence Labs and its core business.

Wall Street analysts are cautiously optimistic about Meta’s future earnings. They expect the company’s EPS to climb by 3.7% YOY to $6.67 for the current quarter. However, for the current year, EPS is projected to decline slightly YOY to $29.67, followed by a 13.9% increase to $33.79 in fiscal 2027.

This month, Argus Research, led by analyst Joseph Bonner, maintained a bullish “Buy” rating on Meta and an $800 price target, reflecting consistent positive sentiment around the stock. Last month, Guggenheim analyst Michael Morris maintained a “Buy” rating on the stock and raised the price target from $800 to $850.

Meta has been in the spotlight on Wall Street, with analysts awarding it a consensus “Strong Buy” rating. Of the 56 analysts rating the stock, a majority of 46 analysts have rated it a “Strong Buy,” three analysts suggest a “Moderate Buy,” while seven analysts are playing it safe with a “Hold” rating. The consensus price target of $864.02 represents a 34.33% upside from current levels. The Street-high price target of $1,144 indicates a 78% upside.

Despite the softness in the stock, analysts remain bullish on Meta’s long-term prospects. Given the robustness of the company’s core operations, the stock might still be a buy for investors willing to tolerate near-term volatility.

On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com