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Meta Platforms:Quarterly Results/2024 Q1: Difference between revisions
Meta Platforms:Quarterly Results/2024 Q1 (view source)
Revision as of 09:19, 22 April 2024
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=== Monetization and impression volumes are improving === | === Monetization and impression volumes are improving === | ||
* Buy, $525->$550: Truist sees (April 17, 2023) improving monetization after two years of compression. They also see higher impression volume and growth in "must-buy status" within the digital ad ecosystem as cookie deprecation continues and the macro environment remains volatile. As such, they are raising their forecast for 2024 revenue to $158.7 billion from $156.9 billion. They pointed out that Meta's huge investments in AI are yielding better ranking and recommendation results for advertisers<ref>https:// | * Buy, $525->$550: Truist sees (April 17, 2023) improving monetization after two years of compression. They also see higher impression volume and growth in "must-buy status" within the digital ad ecosystem as cookie deprecation continues and the macro environment remains volatile. As such, they are raising their forecast for 2024 revenue to $158.7 billion from $156.9 billion. They pointed out that Meta's huge investments in AI are yielding better ranking and recommendation results for advertisers. He cited Sensor Tower data that showed the average daily time spent on Facebook was up 3% y/y while that of TikTok was down 4%<ref>https://seekingalpha.com/news/4090442-meta-projected-to-beat-consensus-as-q1-results-approach-truist</ref>. | ||
* Buy, $525->$590: Citi said (April 15, 2024) that their tracker indicates that Reels ad loads grew by 90 basis points QoQ to 20% as engagement continues to improve. They expect Reels ad load will continue to improve amid newer ad innovations, new artificial intelligence video architecture and greater advertiser adoption<ref>https:// | * Buy, $525->$590: Citi said (April 15, 2024) that their tracker indicates that Reels ad loads grew by 90 basis points QoQ to 20% as engagement continues to improve. They expect Reels ad load will continue to improve amid newer ad innovations, new artificial intelligence video architecture and greater advertiser adoption. Citi cited Sensor Tower data that indicated the average daily minutes spent per user on Instagram was up 4% y/y in Q1 2024<ref>https://www.investing.com/news/company-news/citi-bullish-on-meta-platforms-stock-eyes-strong-instagram-reels-engagement-93CH-3377738</ref>. | ||
* Buy, $525->$600: Piper Sandler said (April 11, 2023) their data checks were again positive. They see impressions roughly in-line with Q4 2023 and pricing flat year-over-year<ref>https://thefly.com/landingPageNews.php?id=3895520&headline=META-Meta-Platforms-price-target-raised-by--at-Piper-Sandler-heres-why&utm_source=https://thefly.com/news.php%3fsymbol=META&utm_medium=referral&utm_campaign=referral_traffic</ref>. | * Buy, $525->$600: Piper Sandler said (April 11, 2023) their data checks were again positive. They see impressions roughly in-line with Q4 2023 and pricing flat year-over-year<ref>https://thefly.com/landingPageNews.php?id=3895520&headline=META-Meta-Platforms-price-target-raised-by--at-Piper-Sandler-heres-why&utm_source=https://thefly.com/news.php%3fsymbol=META&utm_medium=referral&utm_campaign=referral_traffic</ref>. | ||
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* Buy, $575: Mizuho said their deep dive on Meta's key products indicates an upside to the consensus revenue forecast for 2024. Things such as improving Reels monetizations, geographic expansion, Amazon Shops partnership, and unified ranking to optimize video placements give Mizuho confidence that Meta's revenue will top the street-consensus estimate of 20%. They also expect Meta's long-term investments in WhatsApp and AI could generate a 65% upside in sales and users over time<ref>https://thefly.com/landingPageNews.php?id=3883539&headline=META-Mizuho-names-Meta-Platforms-top-pick-after-product-deep-dive&utm_source=https://thefly.com/news.php%3fsymbol=META&utm_medium=referral&utm_campaign=referral_traffic</ref>. | * Buy, $575: Mizuho said their deep dive on Meta's key products indicates an upside to the consensus revenue forecast for 2024. Things such as improving Reels monetizations, geographic expansion, Amazon Shops partnership, and unified ranking to optimize video placements give Mizuho confidence that Meta's revenue will top the street-consensus estimate of 20%. They also expect Meta's long-term investments in WhatsApp and AI could generate a 65% upside in sales and users over time<ref>https://thefly.com/landingPageNews.php?id=3883539&headline=META-Mizuho-names-Meta-Platforms-top-pick-after-product-deep-dive&utm_source=https://thefly.com/news.php%3fsymbol=META&utm_medium=referral&utm_campaign=referral_traffic</ref>. | ||
* Buy, $550->$585: Based on their market analysis, Jefferies expects Meta will capture 50% of incremental market dollars in 2024, making its ad revenue grow by 20%, above the 9% industry average as the company scales its AI ad tools which supplement the already good Advantage+ product<ref>https://thefly.com/landingPageNews.php?id=3892008&headline=META;AMZN-Meta-Platforms-price-target-raised-by--at-Jefferies-heres-why&utm_source=https://thefly.com/news.php%3fsymbol=META&utm_medium=referral&utm_campaign=referral_traffic</ref>. | * Buy, $550->$585: Based on their market analysis, Jefferies expects Meta will capture 50% of incremental market dollars in 2024, making its ad revenue grow by 20%, above the 9% industry average as the company scales its AI ad tools which supplement the already good Advantage+ product<ref>https://thefly.com/landingPageNews.php?id=3892008&headline=META;AMZN-Meta-Platforms-price-target-raised-by--at-Jefferies-heres-why&utm_source=https://thefly.com/news.php%3fsymbol=META&utm_medium=referral&utm_campaign=referral_traffic</ref>. | ||
=== Meta to post positive Q1 results === | |||
* Buy, $550: Analyst Justin Post of Bofa said their ad checks and Easter benefits were positive for Meta. He cited Sensor Tower data that indicated healthy Instagram users & time spent (though time spent on Facebook was down Y/Y in Q1). He guided for a conservative Q2 due to dollar depreciation. Post forecasts Meta will report Q2 revenue of between $36.0 billion and $39.5 billion versus the Street estimate of $38.3 billion<ref>https://www.benzinga.com/news/24/04/38337954/metas-ai-edge-undervalued-assets-could-drive-surprising-gains-analysts-say</ref>. | |||
== References == | == References == | ||