In 2025, Meta Platforms (META) is undergoing another strategic evolution. After years of dominance through Facebook, Instagram, and WhatsApp, the company is now placing renewed emphasis on Threads, -its Twitter/X rival launched in 2023. While Meta has achieved massive scale across its platforms, the rise of Threads represents both opportunity and uncertainty.
The big question for traders: Can Threads become a sustainable revenue driver, or is it simply a defensive move against platform fragmentation and declining youth engagement?
Threads: User Growth vs Monetisation
Threads gained over 100 million users in its first few months, but 2024 saw growth plateau. In 2025, Meta has focused on tightening Threads' integration with Instagram, enhancing algorithmic discovery, and rolling out creator monetisation tools.
However, monetisation remains minimal compared to Facebook and Instagram. Threads still lacks broad advertiser adoption, and time spent per user is lower than Meta’s mature platforms. Traders often watch key data points: daily active users (DAU), time spent per session, and the rollout of sponsored content and native ads.
The potential is real, -especially for capturing younger demographics migrating away from legacy platforms , but Meta must prove that Threads can deliver high-margin engagement at scale.
Core Ads Business Still Dominates
Even with new experiments like Threads and the Metaverse, Meta’s real strength remains its core advertising engine. Facebook and Instagram continue to generate the bulk of revenue, supported by strong ad targeting capabilities driven by AI and first-party user data.
In Q1 2025, Meta’s ad revenue rose 11% year-over-year, driven by growing demand from e-commerce and app developers. Cost-per-click (CPC) is stabilising after years of volatility, and ad loads remain near historical averages.
For traders, the key is whether Meta can maintain ad revenue growth despite regulatory pushback on tracking and competition from TikTok, YouTube, and emerging platforms.
Reality Labs: Still a Cost Center in 2025
Meta’s ambitions in virtual and augmented reality continue through Reality Labs, the division behind Quest headsets and Horizon Worlds. However, despite billions in investment, Reality Labs remains deeply unprofitable. In Q1 2025, the division posted another multibillion-dollar operating loss.
The strategic rationale is long-term: Meta aims to build the infrastruct ure for the “next computing platform.” But for traders focused on short- to medium-term valuation, the burn rate is significant. Investors are increasingly demanding either a clear monetisation path or a reduction in Metaverse-related spending.
Watch for any signs of restructuring or pivoting toward enterprise-focused VR applications, which Meta has hinted could offer faster ROI.
Risks: Regulation, Competition, and Platform Fatigue
Meta faces growing regulatory scrutiny in the EU and U.S., particularly regarding content moderation, user privacy, and monopolistic behavior across its platforms. Fines and legislative actions may constrain future ad personalisation capabilities, which would directly impact monetisation.
At the same time, competition is intensifying. TikTok continues to lead among Gen Z, and new decentralized platforms are attracting users dissatisfied with traditional social media ecosystems. Meta’s challenge is to evolve fast enough to stay relevant without alienating existing user bases or overextending operationally.
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What Traders Often Watch in META
For traders monitoring Meta in 2025, the key focus areas include:
- Threads: Monetisation milestones, DAU, and ad adoption
- Advertising: CPC trends, ad load, and privacy regulation impact
- Reality Labs: Burn rate and signs of commercial traction
- Platform Health: Engagement metrics across Facebook and Instagram
- Youth Migration: User trends among Gen Z and Gen Alpha
- Regulatory: Global policy shifts on social media and AI
Meta’s stock in 2025 reflects both legacy dominance and risky bets on the future. The balance between execution and experimentation will likely define META’s trajectory for traders this year.
