Meta Platforms Set to Report Q2 Earnings: What to Expect
Key Takeaways
- Meta is set to report second-quarter earnings after the closing bell on Wednesday.
- Analysts expect the company to report year-over-year revenue and earnings growth. Investors will be watching for strength in Meta’s advertising business.
- Meta will likely discuss the company’s AI opportunity after launching a new open AI model, Llama 3.1.
Meta Platforms (META) is set to report second-quarter earnings after the closing bell on Wednesday, with investors watching for advertising revenue strength and updates on artificial intelligence (AI) plans after its most recent AI model announcement.
The Facebook and Instagram parent is expected to report revenue of $38.35 billion, according to estimates compiled by Visible Alpha, about a 20% rise over the year-ago period. Net income is projected to be $12.31 billion, or $4.71 per share, a 58% jump from the year-ago quarter.
| Analyst Estimates for Q2 2024 | Q1 2024 | Q2 2023 | |
| Revenue | $38.35 billion | $36.46 billion | $32 billion |
| Diluted Earnings Per Share | $4.71 | $4.71 | $2.98 |
| Net Income | $12.31 billion | $12.37 billion | $7.79 billion |
Key Metrics: Advertising Revenue Growth
Meta will report its second-quarter ad revenue with Citi analysts expecting the figure to grow 20.5% from the year-ago period to $37.95 billion, citing a strengthening ad environment, adoption of Instagram Reels, and new products for advertisers.
Most advertisers plan to spend more or maintain spending on Meta platforms, a survey conducted by Wedbush analysts found, which could contribute to strong second-quarter results and set the company on a positive trajectory for the second half of the year. The tech giant earlier this year expanded the AI tools it offers to advertisers.
Business Spotlight: AI Potential After Llama 3.1 Launch
Meta this month unveiled its Llama 3.1 open-source AI model. J.P. Morgan analysts said the launch could make Meta AI “the most used AI assistant by year-end, if not sooner.”
The earnings report will offer Meta an opportunity to assure investors that its increased spending to invest in AI is helping the company capitalize on a growth opportunity.
Meta shares finished Thursday down 1.7% at just above $453. The stock has gained about 28% year-to-date.
Read the original article on Investopedia.
Conclusion
Investors are eagerly awaiting Meta Platforms’ second-quarter earnings report, which is expected to show significant year-over-year revenue and earnings growth. The company’s advertising business, fueled by a strengthening ad environment and the adoption of Instagram Reels, is anticipated to drive strong results. Additionally, Meta’s recent launch of the Llama 3.1 open-source AI model has the potential to solidify its position as a leading AI assistant. As Meta continues to invest in AI, the earnings report will provide insights into the company’s progress and its ability to capitalize on the growing AI market. With Meta’s stock showing positive performance year-to-date, investors will be closely monitoring the earnings report for indications of future growth and profitability.
