Get ready for a big week for Meta Platforms (META) investors! The tech giant is gearing up to unveil its third-quarter financial results on October 30th, and Wall Street is buzzing with anticipation. Analysts are predicting a strong showing, with revenue estimates reaching $40.253 billion and earnings per share projected at $5.24.
Meta has been on a roll lately, exceeding analyst expectations for both revenue and earnings in the past six consecutive quarters. Last quarter, revenue soared 11% year-over-year, driven by a 7% increase in daily active users. The company also highlighted the impressive progress of Meta AI, which they aim to establish as the world’s most widely used AI assistant by the end of the year. CEO Mark Zuckerberg expressed optimism in the second-quarter earnings release, stating, “We had a good quarter. We continue to see strong engagement across our apps and we have the most exciting roadmap I’ve seen in a while with Llama 2, Threads, Reels, new AI products in the pipeline, and the launch of Quest 3 this fall.”
Several analysts are already forecasting a positive earnings report, citing Meta’s Reels monetization strategy and AI innovations. BofA Securities, for example, maintained a Buy rating and a price target of $630, proclaiming Meta a top AI pick. Jefferies also shared a bullish outlook, maintaining a Buy rating and raising their price target from $600 to $675. Other analysts, like TD Cowen, Cantor Fitzgerald, and Mizuho, have expressed similar optimism, raising price targets and reiterating their positive ratings. Mizuho analyst James Lee expects a “beat-and-raise” quarter, highlighting strong ad spending and Meta’s potential in messaging and generative AI.
With a year-to-date stock price gain of approximately 60%, investors are eager to see how Meta performs next week. The earnings call, scheduled for 5 p.m. ET on Wednesday, will provide valuable insights into the company’s performance and future direction. Stay tuned for a detailed breakdown of the results and key takeaways from the call.