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Meta Platforms:Quarterly Results/2023 Q4: Difference between revisions
Meta Platforms:Quarterly Results/2023 Q4 (view source)
Revision as of 12:12, 24 January 2024
, 24 January 2024→Analysts Opinions
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=== The advertising market strengthened in Q4 and Reels ad loads continued to expand === | === The advertising market strengthened in Q4 and Reels ad loads continued to expand === | ||
* JMP Securities said their checks point to a healthy digital advertising market in Q4 2023 | * JMP Securities said their checks point to a healthy digital advertising market in Q4 2023, continuing to January 2024<ref>https://www.wallstreetzen.com/news/facebook-emerges-as-top-pick-in-jmp-securities-s-digital-advertising-portfolio</ref>. | ||
* “With the broader online advertising environment strengthening in 4Q, our Reels tracking suggesting 4Q ad load expanding (albeit at a slower pace), and our view that newer ad products are attracting greater demand,” Analyst Ronald Josey of Citi said. “Our Reels ad load tracking suggests ad loads expanded to 19.1% in 4Q, +20bps Q/Q, and with Reels likely becoming revenue accretive in 4Q, we believe | * “With the broader online advertising environment strengthening in 4Q, our Reels tracking suggesting 4Q ad load expanding (albeit at a slower pace), and our view that newer ad products are attracting greater demand,” Analyst Ronald Josey of Citi said. “Our Reels ad load tracking suggests ad loads expanded to 19.1% in 4Q, +20bps Q/Q, and with Reels likely becoming revenue accretive in 4Q, we believe monetisation efficiency through newer ad products and advertiser adoption is ramping,” he added<ref>https://www.investing.com/news/stock-market-news/meta-platforms-target-lifted-at-citi-as-newer-ad-products-attracting-greater-demand-432SI-3280703#:~:text=Citi%20analysts%20raised%20their%20price,are%20attracting%20%22greater%20demand.%22</ref>. | ||
* Truist said Meta's Q4 results | * Truist said Meta's Q4 results would likely show solid growth in digital advertising, aided by the ongoing recovery in pricing. The analysts said conversations with digital advertising agencies indicate demand has been relatively consistent sequentially across social and search, helped by brand spend and e-commerce, with retail media maintaining its stong momentum<ref>https://thefly.com/landingPageNews.php?id=3844611&headline=GOOGL;META-Q-for-Meta-Platforms-Google-likely-to-show-solid-ad-spend-growth-says-Truist&utm_source=https://thefly.com/news.php%3fsymbol=META&utm_medium=referral&utm_campaign=referral_traffic</ref>. | ||
=== Advertising by Chinese businesses will likely continue into 2024 === | === Advertising by Chinese businesses will likely continue into 2024 === | ||
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* TD Cowen survey concluded core Facebook and Instagram share of digital advertising will rise, Reels has emerged as a leader in Short Form Video surpassing TikTok in advertiser preference, and Facebook is ranked number two in ROI<ref>https://thefly.com/landingPageNews.php?id=3841337&headline=META-Meta-Platforms-price-target-raised-by--at-TD-Cowen-heres-why&utm_source=https://thefly.com/news.php%3fsymbol=META&utm_medium=referral&utm_campaign=referral_traffic</ref>. | * TD Cowen survey concluded core Facebook and Instagram share of digital advertising will rise, Reels has emerged as a leader in Short Form Video surpassing TikTok in advertiser preference, and Facebook is ranked number two in ROI<ref>https://thefly.com/landingPageNews.php?id=3841337&headline=META-Meta-Platforms-price-target-raised-by--at-TD-Cowen-heres-why&utm_source=https://thefly.com/news.php%3fsymbol=META&utm_medium=referral&utm_campaign=referral_traffic</ref>. | ||
=== FY 2024 revenue consensus appears conservative === | |||
* "First, FY24 consensus revenue growth of 13% appears conservative against our expected 22% exit rate, considering drivers including improved monetization in Reels and FB Shops, and increased demand from Chinese e-commerce advertisers," Mizuho analysts said. "Lastly, we view Messaging as an attractive optionality, and we estimate WhatsApp could incrementally increase Meta’s revenue base by a third over time using AI to automate customer service," they added<ref>https://www.investing.com/news/stock-market-news/mizuho-deep-dive-suggests-meta-platforms-upside-in-2024-432SI-3271393</ref>. | |||
== References == | == References == | ||