Metaverse (META Earnings)
Meta Platforms (META) will announce Q3 results at 4:05 p.m. ET, followed by a 5:00 p.m. ET earnings call.
Analysts project META’s EPS at $5.22 and revenue at $40.2 billion, in line with prior guidance of $38.5-$41.0 billion.
Industry Context – Alphabet and Snap:
Alphabet showed strong Cloud growth, while Snap issued weak Q4 revenue guidance, suggesting possible softening in ad demand.
AI Innovations and User Growth:
META’s recent AI tools, like Meta AI and GenAI for advertisers, have driven user engagement and ad performance, with daily active people up 7% year-over-year.
User Growth Metrics:
In Q2, Meta saw its Family Daily Active People (DAP) increase by 7% year-over-year to 3.27 billion, with WhatsApp reaching 100 million monthly active users in the U.S. These user trends contributed to a 10% increase in both ad impressions and average price per ad.
Capex and Q4 Guidance:
META raised its FY24 capex to $37-$40 billion for AI investment, with Q4 revenue guidance expected around the consensus of $46.2 billion.
TECHS:
With shares hovering around all-time highs, and up by 68% on a year-to-date basis, META faces a high bar to hurdle. The company has easily surpassed EPS and revenue expectations in each of the past four quarters and the stock action suggests that the market is expecting more of the same tonight. (PVIEW)
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