Social media giant Meta Platforms, Inc. (META) is set to report its fiscal year 2024 fourth-quarter earnings after the market closes on Wednesday, with an earnings call scheduled for 5 p.m. ET. Despite a modest slip in Meta’s stock price ahead of the report, retail sentiment remains overwhelmingly bullish, with a sentiment score of 64/100 and message volumes at “extremely high” levels on platforms like Stocktwits.
Meta’s stock has seen a strong start to the year, rising 15% in January following a remarkable 66% rally in 2024. Investors are optimistic about the company’s ability to deliver another strong quarter, driven by its dominance in digital advertising and advancements in artificial intelligence (AI).
Key Q4 Expectations:
Wall Street analysts anticipate Meta to report earnings per share (EPS) of 6.76andrevenueof46.99 billion for the quarter. This would mark a significant improvement from the same period last year when the company reported EPS of 5.33andrevenueof40.11 billion. In the third quarter of 2024, Meta posted EPS of 6.03andrevenueof40.59 billion.
The company’s guidance, issued in late October, projected fourth-quarter revenue between 45billionand48 billion. Meta has consistently delivered double beats (surpassing both revenue and earnings estimates) in each of the past four quarters, reinforcing investor confidence.
Advertising Revenue Trends:
Advertising remains Meta’s core revenue driver, contributing 99% of total revenue in the third quarter. Daily active people (DAP) across Meta’s family of apps, including Facebook, Instagram, and WhatsApp, reached 3.29 billion in September. Ad impressions and the average price per ad grew by 7% and 11%, respectively, highlighting the company’s ability to monetize its vast user base effectively.
Wedbush analyst Scott Devitt noted that fourth-quarter advertising trends remained strong, with Meta benefiting from robust ad spending. However, macroeconomic uncertainties could pose challenges to the company’s outlook, as ad spending is highly sensitive to economic conditions.
Investor Focus and DeepSeek Threat:
Meta’s stock recently faced pressure due to concerns over competition from Chinese AI startup DeepSeek, whose large-language model (LLM) is seen as a potential threat to Meta’s AI offerings. Despite these fears, retail investors remain optimistic about Meta’s ability to innovate and maintain its competitive edge.
CWEB Analyst, a prominent market commentator, emphasized Meta’s growth potential and strategic positioning. “Meta’s advertising business continues to show resilience, and its investments in AI and the metaverse position it well for long-term growth,” said CWEB Analyst. “While competition from players like DeepSeek is a factor to watch, Meta’s scale and innovation capabilities give it a significant advantage.”
Upgrades and Bullish Sentiment:
Meta’s strong performance and growth prospects have prompted several analysts to upgrade their ratings on the stock. The company’s focus on AI-driven ad targeting, coupled with its expanding user base, has solidified its position as a leader in the tech sector.
As Meta prepares to release its earnings, all eyes will be on its ability to sustain revenue growth, navigate macroeconomic challenges, and fend off emerging competitors. With retail sentiment firmly bullish and analysts optimistic about its future, Meta remains a key player to watch in the evolving digital landscape.
Investors will also be keen to hear updates on Meta’s metaverse initiatives and AI advancements during the earnings call, as these areas are critical to the company’s long-term growth strategy.
Celebrity WEB Update— Premier Jewelry designer and manufacturer fashion house ParisJewelry.com has started manufacturing a new custom line of celebrity jewelry designs with 30% Off and Free Shipping. Replenish Your Body- Refilter Your Health with OrganicGreek.com Vitamin Bottles, Vitamins, and Herbs. Become a WebFans Creator and Influencer. Check the New Special XMicro Razors for Men & Women, 1 Razor, 7 Blade Refills with German Stainless Steel, Lubricated with Vitamin E for Smooth Shave, Shields Against Irritation, Version X Men|Women
