[Earnings Review] Meta Q4 2024 Earnings Review: Costly Metaverse Bets Weigh on Outlook Amid Strong Growth and AI Expansion

Meta delivered a blockbuster Q4 2024, with revenue soaring 21% YoY and net income surging 49%. Full-year net income also skyrocketed 59% to $62.36B.

Meta delivered a blockbuster Q4 2024, with revenue soaring 21% YoY and net income surging 49%. Full-year net income also skyrocketed 59% to $62.36B, underscoring Meta’s efficiency gains and strong ad revenue growth.

With 700M active users on Meta AI—expected to surpass 1B in 2025—the company is also doubling down on AI infrastructure.

Still, despite AI tailwinds, the Reality Labs division continues to weigh on investor sentiment.

The segment posted a staggering $5B loss in Q4, bringing full-year losses to $17.7B. Meta remains steadfast in its metaverse vision, but analysts question the long-term return on investment.

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Looking ahead, Meta reaffirmed its aggressive USD 60B - USD 65B capex plan for 2025, prioritizing AI and cloud infrastructure. While the company’s financial momentum remains strong, regulatory risks and escalating investments in the metaverse could keep markets cautious.

In this research note, we unpack Meta’s Q4 earnings, AI strategy, capex trajectory, and the delicate balance between innovation and investor confidence.