Meta Platforms is expected to announce strong Q4 earnings, with positive sentiment from analysts

From Nasdaq: 2025-01-29 10:30:00

Social media giant Meta Platforms is set to release fourth-quarter fiscal 2024 results today after market close. META stock has outperformed the industry’s growth with returns of 14% in the past three months. Analysts forecast a substantial year-over-year earnings growth of 29.5% and a 17.1% increase in revenues for the to-be-reported quarter.

The focus is on ETFs like iShares Global Comm Services ETF (IXP) and Fidelity MSCI Communication Services Index ETF (FCOM), which have a substantial allocation to Meta Platforms. Meta has a positive Earnings ESP of +6.74% and a Zacks Rank #3, increasing the chances of an earnings beat. Analysts have raised earnings estimates for the fourth quarter, indicating positive sentiment towards the stock.

Meta Platforms expects to post revenues in the range of $45-$48 billion for the fourth quarter. The company plans to significantly accelerate infrastructure spending in areas like AI, the metaverse, and AI-powered glasses. Meta plans to invest around $60 to $65 billion in AI in 2025. Analysts have raised the price target for Meta Platforms ahead of its earnings release.

ETFs like Vanguard Communication Services ETF (VOX) and Communication Services Select Sector SPDR Fund (XLC) hold significant positions in Meta Platforms. These ETFs provide exposure to the communication sector and have a Zacks ETF Rank #3 with a Medium risk outlook. First Trust Dow Jones Internet Index Fund (FDN) is the most popular and liquid ETF in the broad technology space, with a Zacks ETF Rank #1 and a High risk outlook.

Meta Platforms has received a favorable recommendation from Wall Street analysts, with a majority suggesting a Strong Buy rating. The stock currently trades at a discount to the industry average, with solid Growth and Momentum Scores. The company plans to invest heavily in infrastructure and AI projects, signaling confidence in future growth prospects.

Overall, Meta Platforms’ upcoming earnings release and investment plans have generated positive sentiment among analysts and investors, with ETFs closely watching the company’s performance and future outlook. The stock is poised for potential growth based on strong earnings estimates and positive industry trends.



Read more at Nasdaq: Meta Q4 Earnings Preview: Should ETF Investors Buy Now?