Analysis of Meta Platforms, Inc.’s Financial Reports

Wenbing Wang ()
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Wenbing Wang: Nankai University, School of Finance

A chapter in Proceedings of the 2025 5th International Conference on Enterprise Management and Economic Development (ICEMED 2025), 2025, pp 115-123 from Springer

Abstract: 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.

Keywords: Financial Analysis; Metaverse; Artificial Intelligence; Advertising Revenue (search for similar items in EconPapers)
Date: 2025
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DOI: 10.2991/978-94-6463-811-0_12

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