Meta (M?ETA) shares climbed about 4% on Friday, extending Thursday's rally after the company delivered a stronger?than?anticipated Q1 performance and offered Q2 guidance in line with forecasts.

• Warning! GuruFocus has detected 2 Warning Sign with META.

First?quarter revenue reached $42.31 billion, topping the $41.40 billion consensus. Adjusted EPS of $6.43 beat the $5.28 estimate.

Sales rose 16% year?on?year, while net income surged 35% to $16.64 billion. Advertising revenue came in at $41.39 billion, outpacing expectations, even as Reality Labs narrowed its loss to $4.2 billion on $412 million in sales.

CFO Susan Li sees Q2 revenue between $42.5 billion and $45.5 billion, though she warned that Asia?based e?commerce advertisers may pull back as a U.S. customs?duty loophole winds down.

Meta trimmed its 2025 expense outlook slightly to $113 billion$118 billion, but boosted capital?spending plans to $64 billion$72 billion to support AI?driven data?centre builds and rising infrastructure costs.

CEO Mark Zuckerberg said the firm remains well positioned amid economic headwinds, with long?term bets on AI and virtual platforms intact. Meta AI now counts nearly 1 billion monthly users, and Threads has grown to 350 million monthly users.

Daily active users hit 3.43 billion, above the 3.39 billion forecast. Meta cautioned that a recent European Commission ruling on its ad?free subscription could dent user experience and revenue in Europe as early as Q3.

Is Meta Stock a Buy Now?

Based on the one year price targets offered by 61 analysts, the average target price for Meta Platforms Inc is $705.66 with a high estimate of $935.00 and a low estimate of $448.00. The average target implies an upside of +19.37% from the current price of $591.14.

Based on GuruFocus estimates, the estimated GF Value for Meta Platforms Inc in one year is $523.95, suggesting a downside of -11.37% from the current price of $591.14.