trust securities Analyst Youssef Squali said: Meta Platforms Co., Ltd. (NASDAQ:META) is a Buy and we raised our price target from $525 to $550.
The analyst said improved pricing and monetization (particularly for Reels) has maintained its must-buy status within the digital advertising ecosystem amid years of compression, increased impression volume, and cookie obsolescence. META’s first quarter and fiscal year 2024 forecasts have been raised to reflect this. and volatile macros.
According to the analyst, Meta’s significant investments across its AI initiatives are resulting in better rankings and recommendation results for users and advertisers alike, and should strengthen Meta’s competitive position over the next few years. That’s what it means.
Squali forecast revenue of $36.5 billion (previously $36.12 billion), which is at the high end of management’s guidance and effectively in line with the street consensus of $36.11 billion. He had expected EPS of $4.28 (previously $4.18), compared to the consensus of $4.30.
Although the first quarter marks the first anniversary of the recovery in global advertising demand (+4% year-on-year growth, with revenue growth reflected in the first quarter of 2023), he does not see any negative impact from the current situation. I didn’t expect it. middle east.
Meta continues to make progress toward reversing the significant targeting headwinds caused by IDFA over the past few years, the analyst said.
Squali added that management’s first-quarter earnings guide assumes currency is neutral to overall revenue growth.
Squali expects management to inline second-quarter guidance and restate fiscal 2024 operating expenditures of $94 billion to $99 billion and capital expenditures of $30 billion to $37 billion to invest in priority areas. did. He also expected operating margins to improve throughout 2024.
Meta stock has risen more than 126% in the past 12 months. Investors can gain exposure to stocks through: Telecommunications Services Selection Sector SPDR Fund (NYSE:XLC) and Fidelity MSCI Communication Services Index ETF (NYSE:FCOM).
Price action: META stock was trading 0.78% lower at $495.88 at last check Wednesday.
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