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Meta Platforms:Quarterly Results/2023 Q3: Difference between revisions
Meta Platforms:Quarterly Results/2023 Q3 (view source)
Revision as of 10:00, 20 October 2023
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== Analyst Opinions == | == Analyst Opinions == | ||
==== User engagement ==== | |||
* Jefferies expects Meta to report high engagement due to its AI advancements, saying that third-party data indicates '''total time spent on Instagram grew 37% year-over-year in September.''' | |||
“We believe investors will react positively to commentary on deepening Reels engagement, improvements to measurement, strong Click to Messaging ad growth and the China advertiser tailwind,” Jefferies analysts wrote<ref name=":1" />. | |||
==== Market reaction after earnings release ==== | |||
* Jefferies thinks that if management reports revenue growth below 20% in the third-quarter or give guidance for fourth-quarter that doesn't reflect acceleration, investors would react negatively. | |||
“Expectations are high with Street calling for Meta to grow revenue about 20% year-over-year in the third quarter which would be the fastest growth since 3Q 2021,” they wrote<ref name=":1" />. | |||
* Jefferies also thinks that if Meta give total expense guidance for 2024 that exceeds $100 billion, it may lead to a downside in the stock. | |||
“Given Meta's historical cadence of growing operating expenses at or below the initial guidance, investors would likely be positive on any guide below $100 billion," they wrote<ref name=":1" />. | |||
* Jefferies also thinks that capex guidance for 2024 that exceeds $35 billion could also cause a downside. | |||
“We model 21% growth to $35 billion in fiscal 2024 and would view guidance above our model as a potential negative for the stock.”<ref name=":1" /> | |||
== Small Competitor Earnings Expectations and Results == | == Small Competitor Earnings Expectations and Results == | ||