Meta Shares Jump 14% on Q1 Beat

Meta Platforms (NASDAQ:META) reported impressive third-quarter results, beating Wall Street’s earnings and revenue estimates thanks to robust ad impression growth and increased ad pricing. Despite the revenue beat, shares fell about 3% intra-day on Thursday as questions lingered around the company's capital expenditure plans for 2025.

For Q3, Meta posted adjusted earnings per share of $6.03, surpassing the $5.21 consensus. Revenue hit $40.59 billion, a 19% year-over-year increase and slightly above the $40.18 billion forecast. Ad impressions across Meta’s suite of apps rose 7% year-over-year, while the average price per ad grew by 11%.

Meta’s family daily active people (DAP) metric also reached 3.29 billion in September, marking a 5% increase over last year, and free cash flow came in strong at $15.52 billion.

Looking ahead, Meta provided Q4 revenue guidance between $45 and $48 billion, with the midpoint above the $46.09 billion consensus. However, while Meta reiterated "significant growth" in 2025 capex for infrastructure, it indicated these expenses would be lower than in Q4.

• Goldman Sachs analyst Eric Sheridan sets a price target of $636 for META, indicating a potential upside of 7.47%.
• Despite warnings of increased AI-related costs, analysts remain optimistic about Meta's AI investments and their potential to drive future growth.
• Meta's third-quarter earnings surpass expectations, with the company raising its spending projections to further invest in AI technology.

Meta Platforms Inc. (NASDAQ:META) is a leading technology company known for its social media platforms, including Facebook, Instagram, and WhatsApp. The company is also heavily investing in artificial intelligence (AI) to enhance its advertising capabilities and user experience. As of October 30, 2024, Eric Sheridan from Goldman Sachs set a price target of $636 for META, suggesting a potential upside of 7.47% from its current price of $591.80.

Meta recently issued a warning about a "significant acceleration" in costs related to AI, following a strong third-quarter performance. Despite this, Jefferies Analyst Brent Thill remains optimistic about the company's AI investments, expecting them to yield positive results. Thill also noted Meta's projection of stronger-than-expected sales for the upcoming holiday quarter, as highlighted by Bloomberg.

The company's third-quarter earnings exceeded analysts' expectations, driven by increased demand for AI. Meta has raised its spending projections for the year to continue investing in this technology. This move aligns with the positive earnings reports from other digital advertising giants like Alphabet and Snap, as reported by the New York Post.

Currently, META's stock price is $591.80, reflecting a slight decrease of $1.48 or -0.25%. The stock has traded between $589.38 and $601.20 today, with a 52-week high of $602.95 and a low of $301.85. Meta's market capitalization is approximately $1.5 trillion, with a trading volume of 23,990,872 shares today.

• UBS maintains a "Buy" rating for NASDAQ:META, increasing its price target from $635 to $690.
• META's new product launches have led to a new all-time high stock price, showcasing strong market confidence.
• The company's market capitalization stands at an impressive $1.51 trillion, with a trading volume of 4,136,073 shares.

Meta Platforms, Inc. (NASDAQ:META) is a leading technology company known for its social media platforms, including Facebook, Instagram, and WhatsApp. The company is a major player in the digital advertising space and is investing heavily in future technologies like virtual reality and the metaverse. Meta competes with other tech giants such as Alphabet, Amazon, and Apple.

On October 7, 2024, UBS maintained its "Buy" rating for META, with the stock priced at approximately $594.83. UBS also increased its price target for META from $635 to $690, as highlighted by TheFly. This reflects UBS's confidence in Meta's growth potential and strategic direction.

Meta recently launched several new products, which have captured significant market attention. This announcement helped propel META's stock to a new all-time high, demonstrating the positive market response to the company's strategic focus on advertising growth and future technologies.

Currently, META's stock price is around $595.70, showing a slight decrease of 0.04% or $0.24. During the trading day, the stock fluctuated between $593.78 and $602.95. The high of $602.95 is the highest price META has reached in the past year, while the lowest was $279.40.

META's market capitalization is an impressive $1.51 trillion, indicating the company's significant market presence. The trading volume for the day is 4,136,073 shares on the NASDAQ exchange, reflecting active investor interest in the stock.

Meta Platforms Inc. (NASDAQ:META) shares rose nearly 2% pre-market today after Rosenblatt analysts raised their price target for the company to $811, up from $643, while maintaining a Buy rating.

The analysts highlighted Meta’s recent Connect 24 event, emphasizing the company’s commitment to leading in the virtual reality (VR), augmented reality (AR), and Metaverse spaces, despite its willingness to incur significant losses. Meta's effective pricing and performance strategies have positioned it as a leader in consumer adoption of these technologies. The event also underscored the company’s continued advancements in artificial intelligence (AI), which the analysts believe is currently a more critical driver of growth.

The analysts see Meta's growing AI capabilities as part of a positive shift in its core advertising business, which he feels is not yet fully reflected in the stock, despite Meta’s 60% rise year-to-date and 90% increase over the last twelve months, outpacing the S&P 500. The analysts made slight adjustments to earnings estimates but argued that Meta's growth trajectory justifies a higher valuation.

• Meta Platforms, Inc. (NASDAQ:META) successfully dismissed a lawsuit concerning its disclosure about Apple's privacy changes, highlighting its legal resilience.
• The stock is currently trading at $535.81, with minor fluctuations within the day, showcasing its stability in the market.
• With a market capitalization of approximately $1.36 trillion and a trading volume of around 2.26 million shares, META demonstrates significant investor interest and confidence.

Meta Platforms, Inc. (NASDAQ:META), the parent company of Facebook, recently made headlines with a significant legal victory. The company was accused of not being upfront with its shareholders about the potential negative impacts of Apple's privacy changes on its advertising revenue. These changes could make platforms like Facebook and Instagram less attractive to advertisers, posing a risk to Meta's main source of income. However, the dismissal of this lawsuit underscores the complex landscape tech companies navigate, balancing user privacy with advertising needs.

The legal win comes at a time when META's stock performance is under close scrutiny. Currently, the stock is trading at $535.81, experiencing a slight dip of about 0.09% or $0.505. This minor decrease is part of the stock's normal fluctuation, as it has moved between a low of $535.18 and a high of $539.75 during the trading day. Despite these daily changes, META's stock has shown remarkable resilience and growth over the past year, with its price ranging from a low of $279.4 to a high of $544.23.

Meta Platforms' market capitalization, sitting at approximately $1.36 trillion, reflects its massive size and influence in the tech industry. This valuation is supported by a trading volume of around 2.26 million shares, indicating a healthy level of investor interest and activity in the stock. The company's ability to navigate legal challenges, like the recent lawsuit dismissal, plays a crucial role in maintaining investor confidence and supporting its stock price.

The fluctuation in META's stock price and its overall performance in the market highlight the dynamic nature of investing in tech companies. Legal victories, like the one Meta Platforms recently achieved, can have a positive impact on investor sentiment, potentially stabilizing or even boosting the stock price. As Meta continues to address the challenges and opportunities presented by privacy and advertising practices, its stock remains a key indicator of the company's health and future prospects.

In summary, Meta Platforms' dismissal of the lawsuit related to Apple's privacy changes is a significant development, reflecting the company's ability to manage legal and regulatory challenges. This, combined with the company's stock performance and market capitalization, offers a comprehensive view of Meta's current standing in the tech industry. Investors and market watchers will likely continue to monitor META closely, given its pivotal role in shaping the digital advertising landscape.

• Meta Platforms, Inc. (NASDAQ:META) is distinguished for its founder-led leadership, surpassing even Nvidia in this aspect.
• The company's strategic decisions and long-term vision, driven by its founder, provide a significant competitive advantage in the tech sector.
• Despite the volatile nature of tech stocks, Meta's market capitalization stands at an impressive $1.26 trillion, reflecting its substantial value and influence in the market.

DA Davidson analysts have recently put a spotlight on Meta Platforms, Inc. (NASDAQ:META), emphasizing its unique position among founder-led companies, even outshining Nvidia in this regard. This analysis underscores the significant competitive advantage Meta derives from its leadership, particularly under the guidance of its founder. Such a distinction is crucial in understanding Meta's standing in the tech industry, especially when compared to giants like Nvidia.

Meta, known for owning Facebook, operates in the highly competitive tech sector where leadership and innovation are key to staying ahead. The company's founder-led approach is seen as a driving force behind its strategic decisions and long-term vision. This leadership style is believed to provide Meta with a more cohesive and dynamic strategy, enabling it to navigate the tech landscape more effectively than some of its peers, including Nvidia.

On the financial front, Meta's recent performance on the NASDAQ reflects the volatile nature of tech stocks. The company saw its stock price decrease by 1.30%, dropping by $6.54 to close at $498.25. This fluctuation occurred within a trading session that saw the stock move between a low of $498.25 and a high of $507.83. Such movements are indicative of the broader market trends and investor sentiments that impact tech stocks like Meta.

Over the past year, Meta's stock has experienced significant volatility, with prices ranging from a low of $279.4 to a high of $544.23. This volatility highlights the challenges and opportunities within the tech sector, where companies like Meta must continuously innovate and adapt to maintain their competitive edge. Despite these fluctuations, Meta's market capitalization stands at an impressive $1.26 trillion, showcasing the company's substantial value and influence in the market.

The trading volume for Meta, at about 2.52 million shares, further illustrates the active interest and investment in the company. This level of activity is a testament to Meta's prominence in the tech industry and the confidence investors place in its founder-led leadership model. As Meta continues to navigate the complexities of the tech sector, its strategic decisions, underpinned by its founder's vision, will be crucial in maintaining its competitive advantage and driving future growth.

DA Davidson analysts initiated coverage on Meta Platforms Inc. (NASDAQ:META) with a Buy rating and set a price target of $600 on the stock. The analysts highlighted Meta as a top pick within the mega-cap space, citing its emerging leadership in key future technology platforms and its attractive relative valuation.

DA Davidson’s price target implies a valuation of 24x 2025 earnings per share (EPS), a premium over Google, reflecting Meta’s stronger positioning. Despite Meta trading at 21x earnings, making it one of the least expensive mega-cap stocks, the analysts note that excluding the Reality Labs segment—where Meta has seen substantial losses—could lower the multiple to just 16x, offering downside protection.

The analysts acknowledge that while Meta faces short-term challenges, including tougher year-over-year comparisons, its reliance on certain advertising sectors, and the upcoming election cycle, the company's positioning for future growth in large technology platforms remains a significant long-term opportunity.