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META Builds Advanced Tools for Creators: Can They Drive Revenues?
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Key Takeaways
Meta Platforms sees rising engagement as Edits app and AI tools drive creator content growth.
META reports nearly 10% of reels now made with the Edits app, with usage nearly tripling QoQ.
Meta Platforms forecasts Q1 2026 revenues up to $56.5B amid strong creator-led momentum.
Meta Platforms (META - Free Report) is benefiting from its focus on building advanced tools for creators, which is increasingly driving both user engagement and revenue growth across its ecosystem.
One of the most notable developments is the rapid adoption of Meta’s media creation tools. Nearly 10% of the reels viewed daily are now created in Meta’s Edits app, a figure that has almost tripled from the previous quarter. The number of daily active users generating media with Meta AI tripled year over year in the fourth quarter of 2025. These tools empower creators to produce more original and engaging content, which in turn attracts more users and increases time spent on Meta’s platforms.
Meta Platforms recently marked one year of its Edits app. The company emphasized its creator-first approach and plans. Launched in 2025, this mobile video editor was developed with input from creators to support the entire creative process.
Throughout the year, Meta Platforms worked on simplifying workflows and adding useful tools. New features included an in-app teleprompter, which helps reduce filming challenges. Continuous updates, based on user feedback, brought improvements in editing, idea generation and organization. Looking ahead, Meta Platforms plans to improve creativity further, streamline production and expand features. The company remains committed to building tools in collaboration with creators.
Meta Platforms’ advanced tools for creators are proving to be a powerful engine for both engagement and revenue. The company expects total revenues between $53.5 billion and $56.5 billion for the first quarter of 2026. The Zacks Consensus Estimate for revenues is currently pegged at $55.49 billion, suggesting 31.15% growth from the year-ago reported figure.
META Faces Stiff Competition
Meta Platforms is facing stiff competition from competitors like Snap (SNAP - Free Report) and Reddit (RDDT - Free Report) . Both Snap and Reddit are expanding their portfolio to compete in the rapidly growing digital ad market.
Snap is benefiting from strong growth in its subscription business, particularly in Snapchat+ and Memories storage plans, as well as increased demand for high-margin ad placements such as sponsored Snaps and Promoted Places. The expansion of its small and medium-sized advertiser base and improved ad platform performance through AI-driven tools are driving top-line growth. Snap expects first-quarter 2026 revenues in the range of $1.56-$1.6 billion, indicating 9-12% year-over-year growth.
Reddit is benefiting from strong growth in its advertising business, driven by investments in machine learning, new ad formats such as shopping ads and expanded automation tools, including Reddit Max. Its expanding portfolio and strong user growth underscore its potential for continued expansion and increased revenue opportunities. For the first quarter of 2026, RDDT expects revenues between $595 million and $605 million, representing 52% to 54% year-over-year revenue growth.
META’s Share Price Performance, Valuation, and Estimates
META’s shares have lost 0.2% in the year-to-date period, underperforming the broader Zacks Computer & Technology sector’s return of 7.6%.
META Stock's Performance
Image Source: Zacks Investment Research
META shares are overvalued, with a forward 12-month Price/Sales of 6.3X compared with the Internet - Software’s 4.03X. META has a Value Score of C.
META's Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings is pegged at $29.83 per share, unchanged over the past 30 days. This suggests 26.99% year-over-year growth.
View the Zacks #1 Rank List
Image: Bigstock
META Builds Advanced Tools for Creators: Can They Drive Revenues?
Key Takeaways
Meta Platforms (META - Free Report) is benefiting from its focus on building advanced tools for creators, which is increasingly driving both user engagement and revenue growth across its ecosystem.
One of the most notable developments is the rapid adoption of Meta’s media creation tools. Nearly 10% of the reels viewed daily are now created in Meta’s Edits app, a figure that has almost tripled from the previous quarter. The number of daily active users generating media with Meta AI tripled year over year in the fourth quarter of 2025. These tools empower creators to produce more original and engaging content, which in turn attracts more users and increases time spent on Meta’s platforms.
Meta Platforms recently marked one year of its Edits app. The company emphasized its creator-first approach and plans. Launched in 2025, this mobile video editor was developed with input from creators to support the entire creative process.
Throughout the year, Meta Platforms worked on simplifying workflows and adding useful tools. New features included an in-app teleprompter, which helps reduce filming challenges. Continuous updates, based on user feedback, brought improvements in editing, idea generation and organization. Looking ahead, Meta Platforms plans to improve creativity further, streamline production and expand features. The company remains committed to building tools in collaboration with creators.
Meta Platforms’ advanced tools for creators are proving to be a powerful engine for both engagement and revenue. The company expects total revenues between $53.5 billion and $56.5 billion for the first quarter of 2026. The Zacks Consensus Estimate for revenues is currently pegged at $55.49 billion, suggesting 31.15% growth from the year-ago reported figure.
META Faces Stiff Competition
Meta Platforms is facing stiff competition from competitors like Snap (SNAP - Free Report) and Reddit (RDDT - Free Report) . Both Snap and Reddit are expanding their portfolio to compete in the rapidly growing digital ad market.
Snap is benefiting from strong growth in its subscription business, particularly in Snapchat+ and Memories storage plans, as well as increased demand for high-margin ad placements such as sponsored Snaps and Promoted Places. The expansion of its small and medium-sized advertiser base and improved ad platform performance through AI-driven tools are driving top-line growth. Snap expects first-quarter 2026 revenues in the range of $1.56-$1.6 billion, indicating 9-12% year-over-year growth.
Reddit is benefiting from strong growth in its advertising business, driven by investments in machine learning, new ad formats such as shopping ads and expanded automation tools, including Reddit Max. Its expanding portfolio and strong user growth underscore its potential for continued expansion and increased revenue opportunities. For the first quarter of 2026, RDDT expects revenues between $595 million and $605 million, representing 52% to 54% year-over-year revenue growth.
META’s Share Price Performance, Valuation, and Estimates
META’s shares have lost 0.2% in the year-to-date period, underperforming the broader Zacks Computer & Technology sector’s return of 7.6%.
META Stock's Performance
Image Source: Zacks Investment Research
META shares are overvalued, with a forward 12-month Price/Sales of 6.3X compared with the Internet - Software’s 4.03X. META has a Value Score of C.
META's Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings is pegged at $29.83 per share, unchanged over the past 30 days. This suggests 26.99% year-over-year growth.
Meta Platforms, Inc. Price and Consensus
Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote
Meta Platforms currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.