By Meta Platforms Inc.’s stock is predicted to continue its upward trend as the social-media company prepares to announce an increase in advertising revenue during its fourth-quarter results.
Earnings
Analysts, as tracked by FactSet, are anticipating that Meta will report earnings of $4.82 per share, which is more than double the $1.76 per share reported the previous year.
Revenue
The average expectation among analysts is that Meta will report a total fourth-quarter revenue of $39.1 billion, compared to $32.2 billion in the same period last year.
Stock Movement
Over the past 12 months, Meta’s stock has experienced an astonishing 170% surge, while the S&P 500 index has seen a 21% increase.
Of the 63 analysts covering Meta’s stock on FactSet, 45 rate it as a buy, 10 as hold, and one as sell. The average price target for Meta shares among these analysts is $397.70.
Analyst Insights
Following Google parent Alphabet Inc.’s strong ad sales report that fell short of some investors’ expectations, Meta is expected to benefit from a significant surge in digital advertising.
Jefferies analyst Brent Thill expressed optimism, stating that Meta is “firing on all cylinders.” Thill raised his price target on Meta shares from $425 to $455, noting positive feedback from recent digital ad checks.
Seaport Research Partners analyst Aaron Kessler also raised his price target from $390 to $435 based on the belief that Meta’s digital ads will thrive and AI initiatives will contribute to the company’s bottom line.
However, Meta’s interaction with federal lawmakers remains a concern. Mark Zuckerberg, the CEO of Meta, faced intense questioning from members of the Senate Judiciary Committee during his eighth visit to Capitol Hill. The inquiries mainly focused on Meta’s efforts to protect young users.
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