Expectations for Q4 2024 Earnings Report
Meta Platforms (META) is gearing up to disclose its fourth-quarter 2024 earnings report, and the anticipation among investors is palpable. The tech behemoth has seen its stock rise by an impressive 15% year-to-date, in part due to its strategic investments in artificial intelligence (AI) and successful monetization efforts. Observers will be particularly interested in Meta’s response to the recent emergence of DeepSeek AI, a Chinese startup whose latest AI models made waves in the US tech sector, causing a market value decline exceeding $1 trillion.
Over the past five days, Meta’s stock has surged by 7%, distinguishing itself as one of the few US tech stocks to withstand the fallout of the DeepSeek debacle. With the company’s shares hitting all-time high levels ahead of the Q4 earnings announcement, analysts are projecting a profit of $6.90 per share, reflecting a substantial 29.5% growth compared to the same period the previous year. Forecasts for the quarter have shown a 2.07% uptick over the past 60 days, with revenues expected to climb by 17.1% to reach $46.97 billion.
Leading institutions such as Goldman Sachs and TD Cowen have adjusted their outlooks on Meta to a favorable buy rating, aligning with the general sentiment. Notably, CNN Data reveals that among 73 surveyed analysts, an overwhelming 84% have issued a buy rating for Meta’s stock, with only 3% advocating to sell. Concurrently, the platform has set a median price target of $660 for the next twelve months, indicating a 1% increase from the current share price, along with an ambitious high-end target of $811, translating to a 24% surge. Furthermore, Meta holds a stellar performance rating, with expectations that it will outperform the market with relative ease.
Turning to Bloomberg’s projections for Meta’s impending earnings report, estimates include: a revenue estimate of $46.98 billion, an advertising revenue estimate of $45.66 billion, a Family of Apps revenue estimate of $46.08 billion, a Reality Labs revenue estimate of $1.11 billion, an Other revenue estimate of $433.3 million, an operating income estimate of $20.09 billion, a Family of Apps operating income estimate of $25.3 billion, a Reality Labs operating loss estimate of $5.1 billion, an operating margin estimate of 42.6%, an EPS estimate of $6.78, an ad impressions estimate of +10.1%, an average price per ad estimate of +7.33%, and an average daily usage estimate of 3.28 billion for the Family of Apps platform.
The curtain is set to rise on Meta’s earnings report shortly after 4 pm ET, with an ensuing conference call with analysts scheduled for around 5 pm ET. As the market eagerly awaits these pivotal revelations, all eyes will be on how Meta Platforms navigates the ever-evolving landscape of technology and investor expectations.
