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07-24

$Meta Platforms, Inc.(META)$ 

๐ŸŽจ Meta's Q2 Earnings Drama! ๐Ÿ“ˆ๐Ÿ’ฅ

Kia ora Tiger traders,

Get ready for the Meta show! ๐ŸŒŸ Meta Platforms (META) is rolling out its Q2 earnings on July 31, right after the market close. The buzz is all about double-digit growth in both revenue and earnings, but hold onto your hats, because the real drama could come from the capital expenditures outlook. ๐Ÿ’ฐ๐Ÿ“‰

Meta's earnings reports are known for their wild rides, and Q2 might just be another rollercoaster. Even though Iโ€™m a Meta lifer, I'm staying neutral on the shares ahead of this quarter. ๐Ÿค”

Why Metaโ€™s Q1 Didnโ€™t Wow Investors:

Meta was crushing it with a 27% year-over-year revenue jump to $36.46 billion in Q1, beating expectations. Their ad game is strong, but despite an earnings per share (EPS) beat of $4.71, the market wasnโ€™t impressed. Why? Key issues included:

1. Light Revenue Guidance: Metaโ€™s forecast for Q2 didnโ€™t hit the sweet spot, with a midpoint of $37.75 billion, below analystsโ€™ average estimate of $38.3 billion. ๐Ÿ“‰

2. Rising CapEx: The big spender alert! Meta upped its capital expenditures to $35-40 billion for the year, mainly for AI infrastructure like their open-source model Llama. This made them the biggest AI hardware spender in Big Tech, raising eyebrows. ๐Ÿค‘๐Ÿค–

The last big sell-off happened when Meta splurged on the metaverse, sparking concerns. Investors are wary after Meta trimmed its workforce by 20%, only to see more big spending on projects like AR glasses. ๐Ÿค“

Q2 โ€“ Risk or Reward?

Despite the Q1 dip, Meta bounced back, trading close to $540 per share. Analysts have mixed feelings, but the big question is CapEx. CFO Susan Li hinted at more spending beyond 2024, which could spook investors again. ๐Ÿ•ต๏ธโ€โ™‚๏ธ

Analysts' Take:

Meta's forward P/E ratio is 24x, just a smidge above its five-year average. With strong ad revenue growth and heavy AI investments, its forward PEG ratio is 1.34x, below historical averages. Wall Street loves Meta, with a Strong Buy consensus. The average target price is $538.95, suggesting a 10.1% upside. ๐Ÿ“Š๐Ÿ’ก

The Bottom Line:

Meta is set for another robust quarter, but watch that CapEx! With its track record of bold, sometimes controversial investments, investor reactions will be telling. For now, Iโ€™m playing it safe and keeping an eye on the long game. Metaโ€™s heavy AI bets could pay off big time. ๐Ÿš€

Fun Fact:

Meta Platforms, formerly known as Facebook, was founded in 2004 in a Harvard dorm room by Mark Zuckerberg and his college roommates. The company has grown exponentially and now connects over 2.8 billion people worldwide through its family of apps. ๐ŸŒ๐Ÿ“ฑ๐Ÿ‘ฅ

Historical Fact:

In 2012, Facebook acquired Instagram for $1 billion, a move that was initially criticized but later proved to be highly successful. Today, Instagram boasts over 1 billion active users and significantly contributes to Metaโ€™s revenue through its advertising platform. ๐Ÿ“ธ๐Ÿ’ธ๐Ÿš€

Tech Tidbit:

Meta is heavily invested in the development of the Metaverse, an interconnected virtual universe where people can interact, work, and play in a fully immersive digital environment. This vision is part of their long-term strategy to shape the future of the internet. ๐Ÿ•ถ๏ธ๐ŸŒ๐Ÿ‘พ

Analyst Insight:

According to a report by Bloomberg, Metaโ€™s ambitious investments in AI and virtual reality are expected to drive significant growth over the next decade, potentially revolutionizing industries beyond social media. ๐Ÿ“Š๐Ÿค–๐Ÿ’ก

Quote:

โ€œTechnology is best when it brings people together.โ€ - Matt Mullenweg, founder of WordPress. This quote resonates with Metaโ€™s mission to build community and bring the world closer together. ๐ŸŒ๐Ÿค๐Ÿ’ฌ

Happy trading ahead! Cheers, BC ๐Ÿ€

@CaptainTiger @TigerPM @Daily_Discussion @TigerStars @Tiger_comments @CaptainTiger @MillionaireTiger @Tiger_Earnings @TigerGPT 

Meta $1Trln Market Cap: $500 is Within Reach?
META delivered a surprising and stellar earnings with historical 20%+ surge in Friday trading, adding $205 billion in its market cap. The company significantly raised guidance, and announced first-ever $50 billion share buyback and a $0.5 per share dividend. --------------- How will Meta move after earnings? Will Meta head to $500 in Feb.? Are you bullish on social media stock?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • TigerGPT
    07-24
    TigerGPT

    Meta Platforms, Inc. (META) Q2 2024 Earnings Analysis

    Earnings Data:

    In Q1 2024, Meta Platforms reported a year-over-year revenue jump of 27% to $36.46 billion, surpassing expectations.  

    The earnings per share (EPS) beat was $4.71.  

    Key Points of Earnings Report:

    Meta's Q2 revenue guidance fell short of analysts' average estimate. The midpoint of the forecast was $37.75 billion, below the expected $38.3 billion.  

    The company increased its capital expenditures outlook for the year to $35-40 billion, primarily for AI infrastructure, including their open-source model Llama.  

    Earnings Forecast for Q2 2024:

    Forecast EPS: $4.72 (USD)  

    Forecast Gross Income: $38.30 billion (USD)  

    Forecast EBIT: $14.56 billion (USD)  

    Relevant Opinion:

    According to a report by Bloomberg, Meta's ambitious investments in AI and virtual reality are expected to drive significant growth over the next decade, potentially revolutionizing industries beyond social media.  

    Disclaimer:The above analysis is for reference purposes only and should not be considered as investment advice. Please conduct thorough research and consult with a financial advisor before making any investment decisions.

    Sources:

    The Takeaway: Big Tech earnings won't be make or break for the stock market: Morning Brief  

    Meta Platforms (NASDAQ:META) Q2 Earnings Preview: Capital Spending Risks Loom  

    Truist Financial Keeps Their Buy Rating on Meta Platforms (META)  

  • joozy
    07-25
    joozy
    Impressive growth but cautious about Q2 outlook. ๐Ÿ“ˆ๐Ÿค”
  • River0
    07-25
    River0
    Hold tight, the Meta earnings show is about to begin
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