Wall Street is bullish on Meta earnings as analysts eye an AI boost...
Wall Street analysts have high hopes for Meta's third-quarter earnings report on Wednesday. Investors are keeping an eye on growth opportunities from AI. Bank of America has said the stock is a top AI pick.
Positive Expectations
Wall Street analysts are upbeat ahead of Meta's third-quarter earnings report on Wednesday after the closing bell. Analysts generally expect positive revenue and earnings figures, thanks to the Facebook parent's AI ad optimization and sweeping cost cuts, which have included several rounds of layoffs and a retreat from some of its virtual-reality projects.
Growth Outlook
Investors will be watching for signs that Meta can continue growing. The company is reportedly working on a search tool for its AI chatbot. Wall Street is also looking for strong guidance for the current quarter, though analysts think costs could come in higher than expected.
Analysts' Insights
Here's what analysts are saying ahead of the tech giant's earnings report:
- Mark Shmulik, a senior analyst at Bernstein, believes Meta's long-run growth trajectory looks solid.
- JMP analysts see the search engine as a huge positive for Meta's future.
- Bank of America analysts expect a "modest" earnings beat from the company.
- Morningstar describes Meta as a "clear leader" in social media.
- CFRA Research highlights potential challenges for Meta in the upcoming quarters.
Challenges and Opportunities
CFRA Research mentioned that Meta could face challenges due to the risk of growth deceleration in the last quarter. However, they raised their price target on the stock, indicating potential upside.
Overall, analysts are optimistic about Meta's earnings report and the company's growth prospects in the AI space.
