Wall Street Analysts Bullish on Meta’s Q3 Earnings Ahead of Report
Wall Street analysts are expressing optimism about Meta’s upcoming third-quarter earnings report, driven by the company’s AI ad optimization efforts and cost-cutting measures. Investors are closely watching Meta’s growth potential, including a rumored new AI-powered search tool.
Bernstein analyst Mark Shmulik emphasizes Meta’s robust long-term growth trajectory, noting the stock’s impressive 70% increase this year and 550% rise since 2022. Shmulik maintains an “Outperform” rating with a $675 price target, suggesting a 15% upside.
JMP analysts highlight Meta’s potential to monetize search, citing the company’s large active user base and strong advertiser relationships. They maintain an “Outperform” rating with a $635 price target, indicating an 8% increase.
Bank of America analysts predict a modest earnings beat for Meta, with expected revenue of up to $47.5 billion, representing an 18% year-over-year increase. They maintain a “Buy” rating with a $630 price target, implying a 7% upside.
Morningstar recognizes Meta as a clear leader in social media but expresses concerns about sustaining growth and capital expenditure on generative AI. Their previous fair value estimate of $560 implies a 5% downside.
CFRA Research notes potential challenges due to growth deceleration, estimating Q3 growth to slow to 18% from 22% in Q2. However, they raised their price target to $650, suggesting an 11% upside.
As Meta prepares to release its Q3 earnings, analysts will be closely monitoring the company’s guidance for the current quarter and any updates on its AI initiatives and growth strategies.
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