Meta is expected to report its first-quarter results after the market closes on Wednesday.
Analysts are bullish on the tech giant, expecting revenue and earnings to grow more than 10% year over year.
Ongoing legal and regulatory issues could negatively impact Meta’s business.
Meta Platforms ( META ) will report first-quarter results after the market closes on Wednesday, and analysts remain bullish on the Facebook parent company despite tariff uncertainty and legal disputes.
Of the 27 analysts tracked by Visible Alpha covering Meta stock, 25 have “buy” ratings, while only two have “hold” ratings. The stock has an average price target of nearly $695, which represents a premium of about 27% to Friday’s closing price of about $547.
Meta, the parent company of Facebook, Instagram, and WhatsApp, is expected to report earnings of $5.24 per share and revenue of $41.35 billion, up 11% and 13% year over year, respectively.
Morgan Stanley analysts recently wrote that Meta could be hit by a reduction in advertising business from Chinese companies due to tariffs, but said the company should be better positioned to withstand such a blow than Alphabet’s Google or Amazon (AMZN).
Regulatory and legal issues dominate recent headlines
Legal and regulatory disputes have plagued Meta. This week, the European Union fined the tech giant 200 million euros (about $227.5 million) for violating the Digital Markets Act. Meta said it plans to appeal the fine.
This month, Meta’s antitrust trial also began. The U.S. Federal Trade Commission (FTC) is seeking to force the company to sell or spin off Instagram or WhatsApp, and said Meta has implemented an “illegal ‘buy or bury’ scheme to maintain its dominant position by acquiring “innovative competitors.”
Meta shares are down about 7% in 2025, having lost a quarter of their value since hitting an all-time high of more than $740 in February amid historic market turmoil that has hit the Big Seven hard.
