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Meta Blows Past Estimates in Q4, Guides for a Soft Q1
Meta reported a strong Q4 with a rather large revenue and EPS beat, showing that its AI investments are paying off as it begins to quickly ramp capex. CEO Mark Zuckerberg doubled down on Meta’s planned $60-65 billion in capex for 2025 while mentioning the “hundreds of billions of dollars” Meta will put towards AI infrastructure in the long run. While management has made it clear that generative AI revenue generation is still early, ROI from investments in core AI is becoming more evident as ad pricing growth is accelerating, offsetting decelerating growth in ad impressions. Despite the Q4 beat, Meta guided for a soft Q1, with revenue coming in slightly below consensus estimates and pointing to just 11.5% growth at midpoint, slowing from 20.6% growth in Q4. We break down Meta’s Q4 report in more detail below.
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