Meta Platforms Inc. CEO Mark Zuckerberg arrives at the Meta Connect event in Menlo Park, California, United States, Wednesday, September 25, 2024.
David Paul Morris | David Paul Morris Bloomberg | Getty Images
Yuan The company is scheduled to report third-quarter earnings after the close of regular trading on Wednesday.
Here are the expectations of analysts polled by London Stock Exchange Group (LSEG):
- Earnings per share: $5.25
- income: US$40.29 billion
Meta shares are up nearly 70% this year, driven by a series of strong earnings reports, and are trading near a record. The company’s Wall Street gains benefited Meta CEO Mark Zuckerberg, who said in early October transcend Amazon For the first time, founder Jeff Bezos has become the second-richest person in the world, according to the Bloomberg Billionaires Index.
Zuckerberg has been pointing to Meta’s huge investment AIincluding spend billions of dollars exist NVIDIA Popular graphics processing unit to help improve the company’s core online advertising business Apple 2021 iOS Privacy Update.
July and Meta Report Investors remain optimistic about the company’s overall financial health as its sales grew more than 20% for the fourth consecutive quarter. Bernstein Analyst explain In a research note last week, Meta replaced letter The company has been called a “set and forget blue chip” due to its “healthy core business” and low-risk artificial intelligence strategy.
Meta results were released a day after Digital Advertising letter, Reddit and break All companies reported solid quarterly earnings. Microsoft reports earnings after the bell on Wednesday, capping off an important week of tech earnings on Thursday, when Apple and Amazon release quarterly financial reports.
One possible concern for Meta is slowing revenue growth.
If Meta meets analysts’ expectations for third-quarter revenue, annual growth will be 18%, down from 23% in the same period last year. At that time, Meta benefited greatly Huge digital ad spending China-linked retailers such as Temu and Shein have launched the products, and it’s unclear how long the companies’ digital marketing blitz will continue.
In February, Meta reported Season 4 In April, the company’s revenue increased by 25% year-on-year Season 1 Revenue increased by 27% compared with the same period last year. Beating those scores will be a “tough hurdle” for the company, said Angelo Zino, CFRA vice president and technology equity research analyst. Investors will be eager to see guidance.
“You look at this and you wonder, is this going to continue?” Zino said.
Meanwhile, Meta continues heavy investment in its real-life laboratory hardware department. The company’s strong online advertising business and previous round main layoffs Results for 2022 and 2023 could help calm anxious investors’ concerns, but Reality Labs’ $4.8 billion in second-quarter expenses was dwarfed by its $353 million in sales.
Zuckerberg Display Company’s Orion AR prototype AR glasses The September launch was deemed a success by employees, and Meta plans to court software developers in 2025 as it develops a consumer version of the headset, according to CNBC report earlier this month.
The excitement and buzz surrounding Meta’s prototype Orion AR glasses and how they fit into the company’s long-term strategy appears to have overtaken Apple and Co. Competing Vision Pro VR headsets, The product debuted earlier this year and starts at $3,500, said Barton Crockett, managing director and senior research analyst at Rosenblatt Securities.
“Orion presented an interesting vision, and they executed it much better than Apple, which no one believed was possible,” Crockett said.
Meta also hopes to further enhance the appeal of Meta smart glasses developed in partnership with Ray-Ban. Essilor Luxottica. Crockett noted that due to the positive response to Ray-Ban Meta glasses, the devices “could become a popular gift this Christmas.”
watch: Despite Meta’s heavy investment in artificial intelligence, its revenue still has room to grow.
