META Platforms is a significant player in digital ad sales, beating estimates with solid user growth.

From Nasdaq: 2024-08-12 12:03:00

META Platforms, leveraging AI, reaches 3.2 billion users daily, a significant player in digital ad sales. Second-quarter results beat estimates, with solid user growth in the US across platforms like WhatsApp and Instagram. Advertising revenues increased 21.7% year-over-year to $38.33 billion, accounting for 97.9% of total revenues. META stock outperforms Magnificent 7 peers, gaining 46.3% year-to-date.

META Platforms integrates AI tools in its offerings, leveraging AI and machine learning to enhance social-media platforms like Facebook and WhatsApp. It aims to target young adults, boosting engagement and enhancing Facebook Reels with unified video recommendations. META is rolling out Meta AI to achieve its goal of becoming the most used AI assistant by the end of the year.

Estimates show upward movement with the Zacks Consensus Estimate for 2024 earnings at $21.23 per share, a 42.77% year-over-year increase. META expects total revenues between $38.5 billion and $41 billion in the third quarter of 2024, with the Zacks Consensus Estimate pegged at $40.08 billion for 17.39% year-over-year growth. However, META stock is deemed overvalued with a Value Style Score of D.

While higher investments in AI infrastructure and losses in reality labs pose risks, META’s AI focus enhances its long-term prospects. Growing footprint among young adults and advertiser popularity signal top-line growth. META is a Zacks Rank #2 (Buy) stock, positioning it well for future success in the AI-driven digital landscape.



Read more at Nasdaq: Is META the Best Stock to Buy Among Magnificent 7 Right Now?