Will Higher Ad Revenues Aid Meta Platforms Stock in Q3 Earnings?

Meta Platforms’ META third-quarter 2025 results, set to be reported on Oct. 29, are expected to reflect the benefits of higher advertising revenues.The Zacks Consensus Estimate for Meta Platforms’ third-quarter advertising revenues is pegged at $48.5 billion, indicating growth of 21.6% year over year.Meta Platforms’ earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 20.47%.  Meta Platforms, Inc. Revenue (TTM) Meta Platforms, Inc. revenue-ttm | Meta Platforms, Inc. Quote Click here to learn how Meta Platforms’ overall third-quarter performance is likely to be.Strong Ad Spending to Aid META’s Q3 Top LineMETA’s staggering reach and increasing ad impressions (up 11% year over year in the second quarter of 2025) make it one of the most important players in the digital ad sales market, apart from Alphabet GOOGL, Amazon AMZN and Snap SNAP. According to eMarketer, global ad spending is expected to rise 7.4% to reach $1.17 trillion in 2025, with Alphabet, Meta Platforms and Amazon accounting for roughly two-thirds of new ad spending.In the second quarter of 2025, Alphabet’s Google advertising revenues rose 11.7% year over year to $82.54 billion and accounted for 74% of total revenues, driven by Search and other revenues. Meanwhile, Amazon’s advertising business increased 23% year over year to $15.6 billion, benefiting from powerful network effects as more sellers and brands compete for visibility, driving higher pricing and improved margins. Snap’s advertising platform is evolving with commerce-driven ad volume growing 39% year over year in the second quarter, and newer ad formats such as Sponsored Snaps are delivering stronger conversion outcomes.Meta Platforms’ focus on improving ad ranking and measurement by leveraging AI has been a key catalyst driving advertisers’ return on investment. META has been leveraging AI and machine learning to boost the potency of WhatsApp, Instagram, Facebook and Threads. Effective usage of AI has been helping the company keep its users engaged. AI-driven feed recommendations have been a key catalyst. Meta Platforms is committed to prioritizing user safety and well-being through initiatives to enhance parental supervision, messaging privacy and time management on its platforms. These factors are expected to have driven user base growth in the third quarter of 2025.META’s Ad Revenue Estimates Show Strong Growth TrendThe Zacks Consensus Estimate for advertising revenues in Asia-Pacific is pegged at $9.66 billion, indicating year-over-year growth of 20% in the third quarter of 2025. The consensus mark for advertising revenues in Europe, the United States and Canada, and the Rest of the World is pegged at $11.65 billion, $21.7 billion and $6.37 billion, respectively, indicating 24.5%, 24.8% and 25.1% growth.The consensus mark for Family Daily Active People or DAP, defined as a registered and logged-in user who visited at least one of the Family products on a given day, is expected to be 3.49 billion for the third quarter of 2025.Zacks Rank Meta Platforms currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Snap Inc. (SNAP): Free Stock Analysis Report Meta Platforms, Inc. (META): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks