January 28, 2026
2 min read
Company overview
Meta maintains a vast global audience with over 3.3 billion users and a large advertising operation that generates significant cash flow. The company leverages its scale across social platforms to monetize user engagement worldwide.
Spending history
Management has increased investment over the past year in AI personnel infrastructure and device initiatives including Oculus and Meta Glasses. From 2021 to 2025 the Metaverse and Reality Labs division reported losses of between $60-75 billion.
Revenue preview
Consensus expects Q4 revenue at $58 billion which would mark the company’s largest quarterly sales figure and represent a 21% revenue increase compared with the prior period.
Profitability
Reported net income last quarter was impacted by a one time non-cash tax charge tied to changes in U.S. tax law that raised tax expense for the period. The company has indicated the change should lower U.S. federal cash tax payments going forward which could affect future cash tax outflows.
Valuation
Current trading multiples sit near 29x which is comparable to the S&P 500 average. That level is higher within a 15-30x range yet lower than reported averages for the broader technology sector which are around 38-40x.
Options
Options expiring on 01/30 show implied volatility near 102% which corresponds to an expected stock move of about $43 in either direction around the event. The eventual direction will be determined by the earnings outcome.
Chart Preview
This material is provided for informational and educational purposes only and does not constitute financial advice. All investments carry risk, including the potential loss of capital.
