Meta Platforms beat earnings and revenue expectations, but fell after-hours due to increased investments

From NASDAQ.: 2024-05-24 11:31:12

Meta Platforms (META) reported Q1 earnings of $4.71 per share, surpassing estimates by 9.03%. Revenues of $36.46 billion also beat expectations by 0.48%, showing a 27.3% increase. Despite a positive earnings report, META shares fell in after-hours trading due to increased investments in AI and the metaverse. Guidance for Q2 2024 predicts revenues between $36.5 billion and $39 billion.

The overall outlook for Meta Platforms has seen a downward trend in fresh estimates in the past month. The company has a great Growth Score of A but lags on the Momentum Score with a D. Estimates have been declining, leading to a Zacks Rank #3 (Hold) prediction for the stock. Investors expect an in-line return in the following months.

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Overall, Meta Platforms exceeded earnings expectations with a strong revenue increase, but faced a decline in share value due to increased investments in AI and the metaverse. Despite this, the company projects substantial revenue growth in Q2 2024. Investors have witnessed a downward trend in fresh estimates for the company, leading to a Zacks Rank #3 (Hold) prediction. Explore potential investment opportunities with Zacks’ free Special Report featuring high-growth stocks.



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