Is Meta Stock A Buy? Facebook Parent Wows With AI Glasses, Avatars And Chart Pattern Investor’s Business Daily

发布于 2023-08-11  18 次阅读

The RS line has been rising in large part because the stock market is in a correction, raising the risk for any new buy. Meta said Reels ads hit an annual run rate of over $10 billion in Q2, up from $1 billion a year earlier. The massive jump came as the number of short-form videos played across Facebook and Instagram reached 200 billion per day. For the third quarter, Meta predicted revenue of $32 billion to $34.5 billion, growing by a range of 15.5% to 24.5%.

  • If that were to happen, Meta's massive advertising business could slow down as companies pull back on spending.
  • Meta's rise today, while certainly good news for shareholders, should also be viewed cautiously.
  • The prompt will give them a chance to opt out of seeing advertisements based on their online behavior.
  • Part of it may be the realization of the savings CEO Mark Zuckerberg was looking for when Meta announced layoffs in November.

Any sign of momentum for Meta's Reality Labs division focused on the metaverse, virtual reality and smart-glasses opportunity would be icing on the cake. Meta Platforms, Inc., engages in the development blue chip companies list of social media applications. It builds technology that helps people connect, find communities, and grow businesses. It operates through the Family of Apps (FoA) and Reality Labs (RL) segments.


According to 42 stock analysts, the average 12-month stock price forecast for Meta Platforms stock is $329.31, which predicts an increase of 9.69%. The family of Apps includes Facebook and all the other digital applications. This segment produces virtually all of the revenue which is in turn 97% advertising oriented.

However, it's having a significant impact on Meta's short-term operations. In the spring, Apple launched changes to its iOS platform to limit how digital advertisers tracked and targeted iPhone users. If you have an iPhone, you have probably seen this; apps will ask you to opt into being tracked. Users can opt out of being tracked, making Meta's advertising platform less effective.

Note that algorithm-based Meta Platforms stock predictions can be wrong. Always conduct your own analysis before trading, and never trade money that you cannot afford to lose. During the three months ended 31 March, the company reported total revenues of $27.9bn, resulting in a 7% year-on-year jump. Of that total, $695m came from the Reality Labs unit, the company’s metaverse-focused business segment.

  • The company is scheduled to release its next quarterly earnings announcement on Wednesday, October 25th 2023.
  • Marketers spent $763 billion globally in 2021, up 22.5% from the prior year.
  • Meta stock has rallied 149% so far in 2023 through Friday's close, second only to Nvidia (NVDA) in the S&P 500.
  • For the third quarter, Meta predicted revenue of $32 billion to $34.5 billion, growing by a range of 15.5% to 24.5%.

Sign-up to receive the latest news and ratings for Meta Platforms and its competitors with MarketBeat's FREE daily newsletter. MarketRank is calculated as an average of available category scores, with extra weight given to analysis and valuation. Best of all, you can activate Portfolio Protection at any time to protect your gains and reduce your losses, no matter what industry you invest in. The fines related to publicly exposing the phone numbers of children who were users of Instagram and allowing for the details of individual users to be scraped from Facebook.

The social media giant is shifting its focus to the metaverse.

Investors have been driving down tech stocks lately as they worry about inflation, which is currently at a 40-year high. Technology stocks like Meta, in particular, have suffered as investors view the sector as riskier compared to other investments. An earlier version of this article misstated how much Meta expected to spend on its deal with the virtual reality start-up Within. Shares of the tech giant, the owner of Facebook, Instagram and WhatsApp, climbed more than 23 percent, its biggest daily gain in nearly 10 years. And it was a huge move for a company its size, adding nearly $100 billion in market value in a single day, or about as much as Citigroup’s entire market capitalization.

Why Meta Platforms Stock Was Up Today

On Thursday, CEO Mark Zuckerberg began to win some believers in his vision for a metaverse future with the unveiling of lifelike avatars. Meta Platforms finished 2021 with annual revenue of $118 billion, an increase of 37% over the prior year. The advertising business was the key driver of this impressive growth as it accounted for 97% of the company's top line.

Shares of Meta Platforms (META -1.23%) were climbing today in response to better-than-expected numbers from big tech peers Alphabet (GOOG -0.96%) (GOOGL -1.10%) and Microsoft (MSFT 0.67%) last night. The analyst anticipates that this move can potentially expand Meta's Total Addressable Market, creating opportunities for fresh use cases and revenue streams. Meta management may comment on the revenue implications in the Q3 earnings call next month. Since then, interest rates and gas prices have surged and consumers have begun repaying federal student loans. Consumer spending on discretionary purchases will likely slow in the U.S. in Q4, while chances of recession are rising in Europe.

The prompt will give them a chance to opt out of seeing advertisements based on their online behavior. Now Meta also is reportedly considering ad-free, subscription-based versions of Facebook and Instagram for the EU. Insider Intelligence estimates that Meta properties account for 42% of total time spent on social media by U.S. adults, but the company soaks up an estimated 75% of social media ad dollars. Still, there's some risk that growth expectations have gotten carried away. Analysts could be getting too bullish about the extent to which Meta will be able to ramp up advertising on Reels short-form videos.

Those ads grew 5.5% from a year earlier in Q2 vs. 2% for the ad market across all media, according to a July 13 Deutsche Bank note. The Morgan Stanley analysts, who have a 375 target on Meta stock, Pit Bull forecast 2024 EPS of $18.50 a share, well above the $16.85 average estimate. In a Sept. 7 research note, Morgan Stanley analysts said they see a path for $25 billion in Reels revenue in 2024.

Is Meta Platforms Stock a Buy Now?

The good news for META stock starts with its diluted earnings per share of $2.20. That’s better than the $1.95 per share Wall Street was expecting in Q1 even if it’s a 19% drop year-over-year (YOY) from $2.72. But whether or not the weakness is over, this company is a great addition to any stock portfolio for the long term. The company will share more details on Quest and its Llama foundational model on the second day of the event tomorrow.

Meta's AI-Powered Future At Connect 2023, Analysts Show Positive Reception

The company's suite of social media products, including Facebook, Instagram, WhatsApp, and Messenger, has grown to boast 2.9 billion daily active users. The sites are free to join and use, making signing up easier, but there are plenty of free services for consumers to choose from. Despite being free for users, Meta has grown its operating income from $538 million to $46.7 billion from 2012 to 2021. offers advanced investment strategies that combine human ingenuity with AI technology. Our investment strategies, which we call “Investment Kits,” help investors manage risk and maximize returns by utilizing AI to identify trends and predict changes in the market. Invest in up to 20 stocks and ETFs by adding a single Kit to your portfolio.

They noted that "user growth remains strong" and said the business can keep expanding even with lower headcount. You must also remember that markets are volatile, and that past performance is no indication of future returns. Always conduct your own analysis before trading, and never trade money that you cannot afford to lose. According to analysts surveyed by MarketBeat, as of 2 November 2022, Meta Platforms stock could be a ‘buy’ – 29 of 50 analysts covering the stock rated it as such.

Zuckerberg might, for now, be more comfortable spending investors’ money. And with a 57% voting stake, any shareholder will struggle to force Simulador de trading him to do otherwise. Facebook and Instagram are under the regulatory microscope – and that is starting to hurt the metaverse, too.

This roughly 6% increase outpaces the S&P 500, which has held relatively steady year-to-date. Worldwide uncertainty about a potential future recession, as well as the war in Ukraine, have also made investors skittish and caused many to flee stocks for safer harbors. The Federal Reserve’s response of boosting interest rates, with many expecting rate increases to continue through 2023 worsened the slump. Since the start of the new year, Meta has seen gains in its stock price, leaving many investors to wonder why. Meta spends a ton of money on research and development, so I wouldn't be surprised to see the company eventually find a workaround for the iOS challenges.