Meta Platforms, the parent company of Facebook, is gearing up to release its first-quarter earnings report after the closing bell on Wednesday. The tech giant has been on a winning streak, with its stock price soaring about 40% in 2024 and nearly 200% the year before. Despite the recent market pullback, Meta has managed to stay afloat by focusing on efficiency and expanding its offerings beyond traditional social media.
In the last quarter, Meta’s earnings report exceeded expectations, resulting in a significant rally. The company even initiated a quarterly dividend and approved a stock buyback, which propelled the stock price up by more than 20%. Historically, Meta has a track record of beating Wall Street forecasts, with the stock gaining an average of 2.3% on earnings days. Analysts are expecting earnings per share of $4.32 and revenue of $36.16 billion for the first quarter, representing a 26% increase in revenue year over year.
The majority of analysts have buy ratings on Meta Platforms, with a price target suggesting an 8% potential upside in the next year. However, some are cautious ahead of the earnings release due to tougher comparable figures and regulatory concerns in Europe. Roth MKM managing director, Rohit Kulkarni, highlighted the importance of CEO Mark Zuckerberg’s ability to deliver strong results and expressed optimism for the company’s growth potential.
Aside from financial figures, analysts will be closely monitoring user engagement metrics such as daily active users, minutes per active user, and average revenue per user. These indicators can provide valuable insights into the health of Meta’s social media platforms and the profitability of its services. Additionally, guidance on capital expenditure spending for the full year will be key in assessing the company’s growth strategy.
As Meta Platforms prepares to unveil its first-quarter earnings, investors are eagerly anticipating the results and future outlook for the company. The tech giant’s strong performance in recent quarters has raised expectations, but concerns remain around regulatory challenges and competitive pressures in the market. Analysts will be paying close attention to user metrics and financial guidance to gain a deeper understanding of Meta’s growth trajectory.