After the close, Meta Platforms (META) is scheduled to issue 4Q24 results with an earnings call set to follow at 5:00 p.m. E.T. The company's earnings report is expected to be released at 4:05 p.m. E.T.
For the quarter, META is expected to post EPS and revenue of $6.76 and $47.0 bln, respectively.
META's capital expenditure (capex) plans are crucial, with CEO Mark Zuckerberg announcing a $60-$65 billion investment in 2025 for AI infrastructure, up from a $38-$40 billion projection for FY24, indicating a 60% year-over-year increase at midpoint guidance.
Attention will also be on META's progress with Llama 4, its latest AI model, set for an early 2025 launch. This was the model that was cited as being used to help develop the DeepSeek model. That said and despite th market turbulence from the DeepSeek news, META's stock has risen over 40% year-over-year, trading near record highs, which adds to its risk profile ahead of the Q4 report.
META's AI initiatives have bolstered its advertising business, offering better ad targeting and higher ROI, evidenced by an 11% increase in average ad price and a 7% rise in ad impressions in Q3.
TECHS:
The ongoing uncertainty surrounding TikTok's potential ban in the U.S. might benefit META, as advertisers shift budgets. However, META's Q3 saw a slight disappointment in Family Daily Active People (DAP), growing only 5% to 3.29 billion, down from a 7% increase previously. The Q4 DAP consensus is set at 3.32 billion.
META's performance will also set expectations for other digital ad companies like Alphabet (GOOG), Snap (SNAP), and Pinterest (PINS), with their earnings due shortly after.
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