The company forecasts revenue of between US$45 billion and US$48 billion in the fourth quarter, compared to the US$46.31 billion estimated by analysts, but it was not enough and the shares are falling.
The actions of Meta Platforms, owner of Facebook, fall 2.5% in the after market after the company reported this Wednesday revenue for the current quarter above market expectations, with strong spending on Christmas advertising that should continue to cover the cost of its enormous investments in artificial intelligence.
Analysts believe that artificial intelligence-based advertising tools and greater monetization of short videos called “Reels” drove Meta’s revenue growth this year.
Many analysts predicted a potential blockbuster year for digital ads in 2024 as economic forecasts improve, citing easing interest rates and sustained consumer spending.
Advertising accounts for the vast majority of Meta’s revenue, meaning higher spending on “marketing” during the holiday season could provide a crucial boost to the company’s results, according to analysts.
Bank of America: “AI Top Pick”
Analysts at Bank of America said they expect a “modest” earnings surplus from the tech giant on Wednesday. They forecast a report of up to $47.5 billion in revenue, which would represent an increase of 18% compared to the previous year.
Meta is a “top AI pick,” the analysts added, pointing to a number of tailwinds, including strong growth in Meta’s AI-powered advertising business, continued growth among younger users and more growth opportunities in AI in general.
The balance of goal
Goal obtained a profit of $6.03 per sharecompared to the estimates of $5.25 per shareaccording to data collected by LSEG.
Third quarter revenues were at $40.59 billionin front of the 40,290 million what analysts expected.
The company anticipates revenues of between US$45,000 million and US$48,000 million in the fourth quarter, compared to 46.310 million estimated by analysts.
Source: Ambito
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