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Meta Platforms:Quarterly Results/2023 Q2: Difference between revisions
Meta Platforms:Quarterly Results/2023 Q2 (view source)
Revision as of 14:29, 20 July 2023
, 20 July 2023→Analysts Commentaries
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== Analysts Commentaries == | == Analysts Commentaries == | ||
=== John Blackledge, TD Cowen === | === Analyst stance on the stock === | ||
[[File:Refinitiv.png|thumb|833x833px|https://www.ig.com/uk/news-and-trade-ideas/nasdaq-100--metas-share-price-and-q2-earnings-results-preview-230720?utm_source=twitter&utm_medium=organic_social®ion=uk&product=multiple_markets&utm_marketing_tactic=awareness&utm_creative_format=text_link&utm_content=news]] | |||
=== Analysts comments === | |||
==== John Blackledge, TD Cowen ==== | |||
* Raised Meta Platforms price target to $345 from $220<ref>https://seekingalpha.com/news/3987382-meta-platforms-rises-td-cowen-upgrades-positive-q2-checks</ref>. | * Raised Meta Platforms price target to $345 from $220<ref>https://seekingalpha.com/news/3987382-meta-platforms-rises-td-cowen-upgrades-positive-q2-checks</ref>. | ||
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* Blackledge was bearish on Meta in Q1 2023. | * Blackledge was bearish on Meta in Q1 2023. | ||
=== Stephen Ju, Credit Suisse === | ==== Stephen Ju, Credit Suisse ==== | ||
* Raised Meta Platforms price target to $361.00 from $277.00 and maintained outperform rating<ref>https://markets.businessinsider.com/news/stocks/enhanced-ad-performance-and-diversified-revenue-growth-sets-meta-platforms-on-a-positive-trajectory-analysts-1032452474</ref>. | * Raised Meta Platforms price target to $361.00 from $277.00 and maintained outperform rating<ref>https://markets.businessinsider.com/news/stocks/enhanced-ad-performance-and-diversified-revenue-growth-sets-meta-platforms-on-a-positive-trajectory-analysts-1032452474</ref>. | ||
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* Like in previous quarters, Advantage+ continues to offset signal loss. | * Like in previous quarters, Advantage+ continues to offset signal loss. | ||
=== Andrew Boone, JMP Securities === | ==== Andrew Boone, JMP Securities ==== | ||
* Raised Meta Platforms price target to $350 from $300 and maintained outperform rating<ref>https://markets.businessinsider.com/news/stocks/enhanced-ad-performance-and-diversified-revenue-growth-sets-meta-platforms-on-a-positive-trajectory-analysts-1032452474</ref>. | * Raised Meta Platforms price target to $350 from $300 and maintained outperform rating<ref>https://markets.businessinsider.com/news/stocks/enhanced-ad-performance-and-diversified-revenue-growth-sets-meta-platforms-on-a-positive-trajectory-analysts-1032452474</ref>. | ||
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* He believes the company is in initial stages of benefiting from multiple product catalysts such as Reels, AI and cost discipline. | * He believes the company is in initial stages of benefiting from multiple product catalysts such as Reels, AI and cost discipline. | ||
=== Goldman Sachs === | ==== Goldman Sachs ==== | ||
* Raised Meta Platforms price target to $335 from $300 and maintained buy rating<ref>https://www.barrons.com/articles/meta-price-targets-raised-digital-ad-rebound-697c3ace?mod=RTA</ref>. | * Raised Meta Platforms price target to $335 from $300 and maintained buy rating<ref>https://www.barrons.com/articles/meta-price-targets-raised-digital-ad-rebound-697c3ace?mod=RTA</ref>. | ||
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* Regarding the performance of digital advertising in each industry, they noted, "There continues to be a large bifurcation in performance by ad vertical dependent upon the macro environment and consumer demand (incl. for goods vs. services). We continue to see sustained strength within travel, local and omnichannel retail. In addition, the more interest rate-sensitive verticals (including. autos, housing, & financial services), while still under pressure on an absolute level, have proven to be relatively more resilient vs. our expectations in Q2. According to data from Pathmatics, US ad impression growth across Facebook and Instagram continues to be strongest within the retail, travel & CPG categories vs. continued pressure (on an absolute basis) within financial services (a continuation of trends seen in the first quarter of 2023 and the fourth quarter of 2022." <ref>https://247wallst.com/technology-3/2023/07/18/goldman-sachs-loves-5-top-internet-stocks-that-live-where-digital-advertising-generates-billions/</ref> | * Regarding the performance of digital advertising in each industry, they noted, "There continues to be a large bifurcation in performance by ad vertical dependent upon the macro environment and consumer demand (incl. for goods vs. services). We continue to see sustained strength within travel, local and omnichannel retail. In addition, the more interest rate-sensitive verticals (including. autos, housing, & financial services), while still under pressure on an absolute level, have proven to be relatively more resilient vs. our expectations in Q2. According to data from Pathmatics, US ad impression growth across Facebook and Instagram continues to be strongest within the retail, travel & CPG categories vs. continued pressure (on an absolute basis) within financial services (a continuation of trends seen in the first quarter of 2023 and the fourth quarter of 2022." <ref>https://247wallst.com/technology-3/2023/07/18/goldman-sachs-loves-5-top-internet-stocks-that-live-where-digital-advertising-generates-billions/</ref> | ||
=== Morgan Stanley === | ==== Morgan Stanley ==== | ||
* Raised Meta price target to $350 from $300 citing that the company could integrate AI tools to its applications, resulting in more revenue<ref>https://www.investing.com/news/stock-market-news/morgan-stanley-remains-bullish-on-alphabet-and-meta-platforms-432SI-3125417</ref>. | * Raised Meta price target to $350 from $300 citing that the company could integrate AI tools to its applications, resulting in more revenue<ref>https://www.investing.com/news/stock-market-news/morgan-stanley-remains-bullish-on-alphabet-and-meta-platforms-432SI-3125417</ref>. | ||
* "We fully expect META to integrate new large language models into its applications to drive new capabilities for users and advertisers, but changing behavior and material success are less certain, and online advertising doesn't have to be zero-sum," they said. | * "We fully expect META to integrate new large language models into its applications to drive new capabilities for users and advertisers, but changing behavior and material success are less certain, and online advertising doesn't have to be zero-sum," they said. | ||
=== Ronald Josey,Citi === | ==== Ronald Josey,Citi ==== | ||
Maintained buy rating on Meta Platforms and raised price target to $360 from $315 while pointing out that<ref>https://seekingalpha.com/news/3983118-meta-platforms-rises-citi-instagram-engagement-monetization-improving</ref>; | Maintained buy rating on Meta Platforms and raised price target to $360 from $315 while pointing out that<ref>https://seekingalpha.com/news/3983118-meta-platforms-rises-citi-instagram-engagement-monetization-improving</ref>; | ||
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* Josey believes advertising revenue will grow by 14% year over year in 2024 and Reels will account for around $10.5 billion in ad revenue. | * Josey believes advertising revenue will grow by 14% year over year in 2024 and Reels will account for around $10.5 billion in ad revenue. | ||
=== Piper Sandler === | ==== Piper Sandler ==== | ||
* On June 14, Piper Sandler analysts raised Meta Platforms price target to $310 from $270 and gave it an overweight rating<ref>https://www.investing.com/news/stock-market-news/piper-sandler-more-confident-on-meta-platforms-reacceleration-432SI-3105244</ref>. | * On June 14, Piper Sandler analysts raised Meta Platforms price target to $310 from $270 and gave it an overweight rating<ref>https://www.investing.com/news/stock-market-news/piper-sandler-more-confident-on-meta-platforms-reacceleration-432SI-3105244</ref>. | ||