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Meta Platforms:Quarterly Results/2024 Q1: Difference between revisions
Meta Platforms:Quarterly Results/2024 Q1 (view source)
Revision as of 10:48, 22 April 2024
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* 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->$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. 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->$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>. Their survey of 6,000 U.S teens established that the average daily hours spent on social media by U.S teens rose by 0.3 hours to 4.7 hours. Additionally, 30% of the respondents voted for Instagram as the most favourite app, up 700 basis points y/y while 35% voted for TikTok (down 300 basis points y/y)<ref>https://seekingalpha.com/article/4684979-meta-platforms-expect-shares-to-pop-on-strong-earnings</ref>. | ||
=== The advertising environment continues to improve === | === The advertising environment continues to improve === | ||
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=== Meta to post positive Q1 results === | === 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>. | * 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>. Their analysis of Sensor Tower data suggests that Instagram has seen a 6% y/y growth in DAUs to 1.1 billion in Q1 2024 while Facebook was flattish at 1.25 billion DAUs<ref>https://seekingalpha.com/article/4684979-meta-platforms-expect-shares-to-pop-on-strong-earnings</ref>.[[File:Analysis of Sensor Tower Data.png|left|thumb|Source: Seeking Alpha<ref>https://seekingalpha.com/article/4684979-meta-platforms-expect-shares-to-pop-on-strong-earnings</ref>]] | ||
== References == | == References == | ||