Meta Platforms (META) is set to report its third-quarter 2024 results on Oct. 30. Expectations are high as the company anticipates total revenues between $38.5 billion and $41 billion for the quarter.
The Zacks Consensus Estimate for third-quarter revenues is $40.16 billion, pointing towards a 17.62% increase from the year-ago quarter. Earnings are also expected to rise by 17.77% to $5.17 per share.
What’s more, Meta Platforms has a track record of beating the Zacks Consensus Estimate in the previous four quarters, with an average surprise of 12.61%.
Insight into Meta Platforms Revenue and Earnings Performance
Meta Platforms has been buoyed by significant advertising revenue growth. In the second quarter of 2024, advertising revenues surged 21.7% year over year to $38.33 billion, comprising 97.9% of total revenues. The company’s advertising revenues are projected to continue rising, driven by robust advertiser spending and enhanced AI capabilities.
With a wide reach of over three billion daily users across WhatsApp, Instagram, Messenger, and Facebook, Meta Platforms is a key player in the digital ad sales market. Leveraging AI and machine learning, the company has been successful in keeping users engaged and offering targeted feed recommendations.
Meta Platforms Stock Performance in Comparison
Year-to-date, Meta Platforms shares have soared by 60.4%, outperforming both the Computer & Technology sector’s return of 25.3% and the Internet Software Industry’s return of 21.3%. Additionally, Meta Platforms has outpaced several industry giants and is showcasing a strong performance trend against peers in the “Magnificent 7” category.
Meta Platforms Position in the Market
Despite its strong performance, Meta Platforms’ stock valuation might be a concern. Trading at a forward 12-month Price/Sales ratio of 7.96X, the company appears relatively higher compared to sector and industry averages. However, Meta Platforms continues to leverage AI to drive growth, using its vast dataset and expanding product portfolio to enhance its competitive edge.
Meta Platforms Strategic Growth Initiatives
Meta Platforms has been doubling down on AI to improve platform offerings and user engagement across its various services. The recent launch of innovative products like the Quest 3S headset, Orion Augmented Reality glasses, and enhanced AI features for its existing products demonstrate the company’s commitment to technological advancement and user experience enhancement.
Despite regulatory challenges and near-term monetization concerns, Meta Platforms remains well-positioned for growth, backed by the increasing adoption of its services and products.
Final Thoughts on Meta Platforms Stock
With a Growth Score of B and a Zacks Rank #2 (Buy), Meta Platforms presents a compelling opportunity for investors. The company’s strategic focus on AI, coupled with its robust service offerings, makes it an attractive stock for the foreseeable future.
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