Analysis of Meta Platforms, Inc.’s Financial Reports

DOI

10.2991/978-94-6463-811-0_12How to use a DOI?

Keywords

Financial Analysis; Metaverse; Artificial Intelligence; Advertising Revenue

Abstract

With the digitization of the global economy and the development of social media, the financial performance of Meta Platforms, Inc. (formerly Facebook), as a global leader in the social media industry, has been the focus of attention in the capital markets. Based on the financial statements of Meta Company from 2022 to 2024, this paper analyzes its financial risks and development opportunities in the transition to metacomes and artificial intelligence by means of horizontal analysis, vertical analysis and financial ratio analysis. Through the analysis of its financial statements, it is concluded that Meta company’s operating income has increased for three consecutive years, and its revenue growth engine is still advertising business, which has also achieved three consecutive years of growth. Secondly, Meta company implemented the “efficiency year” plan and self-developed AI chip (MTIA) and algorithm optimization, and achieved double growth in gross and net profit margin within three years, and achieved remarkable results in cost control. However, Meta still faces some operational problems: for example, the revenue structure is simple and it relies too much on advertising business; Meanwhile, Metaverse continued to lose money; And long-term debt has soared, exacerbating financial risk. This paper provides investors with a financial analysis method to evaluate Meta’s financial data and financial risks, and also provides a reference for the innovation and development of leading enterprises in the social media industry in the process of developing towards artificial intelligence.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Wenbing Wang
PY  - 2025
DA  - 2025/08/14
TI  - Analysis of Meta Platforms, Inc.’s Financial Reports
BT  - Proceedings of the 2025 5th International Conference on Enterprise Management and Economic Development (ICEMED 2025)
PB  - Atlantis Press
SP  - 115
EP  - 123
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-811-0_12
DO  - 10.2991/978-94-6463-811-0_12
ID  - Wang2025
ER  -