- Meta Platforms’ second quarter revenue is $39.07 billion, a 22% increase year-over-year, beating the estimate of $38.34 billion.
- Advertising revenue stands at $38.33 billion, up 22% year-over-year, exceeding the estimate of $37.57 billion.
- The Family of Apps revenue totals $38.72 billion, marking a 22% year-over-year increase, surpassing the estimate of $37.76 billion.
- Reality Labs revenue comes in at $353 million, up 28% year-over-year, but below the estimate of $376.9 million.
- Other revenue is at $389 million, a significant 73% year-over-year increase, beating the estimate of $344.6 million.
- Operating income is $14.85 billion, surpassing the estimate of $14.59 billion.
- The Family of Apps operating income is $19.34 billion, a 47% increase year-over-year, exceeding the estimate of $18.69 billion.
- Reality Labs’ operating loss is $4.49 billion, which is a 20% year-over-year increase, but still better than the estimated loss of $4.53 billion.
- The operating margin stands at 38%, improved from 29% year-over-year, and higher than the estimated 37.7%.
- Earnings per share (EPS) is $5.16, compared to $2.98 year-over-year, and above the estimate of $4.72.
- Ad impressions increased by 10% year-over-year, though below the estimated 13% and last year’s 34% increase.
- The average price per ad increased by 10%, compared to a 16% decrease year-over-year, and higher than the estimated 5.96% increase.
- Average daily users of Family services are 3.27 billion, up 6.5% year-over-year, beating the estimate of 3.22 billion.
- Meta expects third quarter 2024 total revenue to range between $38.5 billion and $41 billion.
- Full-year 2024 capital expenditures are anticipated to be between $37 billion and $40 billion, updated from the previous range of $35 billion to $40 billion.
- Full-year 2024 total expenses are expected to remain unchanged in the range of $96 billion to $99 billion.
- The full-year 2024 tax rate is expected to be in the mid-teens, barring any changes to the tax landscape.
- Shares rise by 4.9% in post-market trading to $498.00 on 37,318 shares traded.
- Analyst ratings include 63 buys, 6 holds, and 4 sells.
Meta Platforms (Facebook) on Smartkarma
Analyst Coverage of Meta Platforms on Smartkarma
On Smartkarma, independent analysts are closely monitoring Meta Platforms (Facebook) to provide valuable insights for investors. Uttkarsh Kohli‘s report, “[Q2 Earnings Preview] Meta’s Ad Revenues Expected to Surge, But Rising Spend Remains a Concern,” anticipates a significant year-over-year increase in EPS and revenue for Q2. Meta’s strong ad performance, boosted by increased daily active users and rising ad prices, is expected to drive revenue growth. Additionally, Meta plans to cut Reality Labs’ budget by 20% while focusing on upcoming hardware production, aiming for cost savings.
Furthermore, Baptista Research‘s analysis delves into how the adoption of AI tools and strategic decisions could impact Meta’s future performance. With a focus on product momentum and business growth, Meta has shown promising results with over 3.2 billion active users per day. The report also evaluates factors influencing Meta’s stock price and conducts an independent valuation using a Discounted Cash Flow methodology. Despite differing sentiments on Meta’s future, these reports provide valuable perspectives for investors navigating the dynamic landscape of Meta Platforms.
A look at Meta Platforms (Facebook) Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
The long-term outlook for Meta Platforms (Facebook) remains positive, based on the Smartkarma Smart Scores. With above-average scores in Growth and Resilience, the company is positioned for future expansion and able to withstand challenges. The Growth score reflects the company’s potential for increasing its market share and profitability, while the Resilience score indicates its ability to navigate uncertainties and economic downturns. Although the Value and Dividend scores are moderate, Meta Platforms’ strong Momentum score suggests a favorable market sentiment and investor interest in the company.
As a social technology company, Meta Platforms Inc. focuses on connecting people, building communities, and facilitating business growth. Engaged in various activities such as advertising and virtual reality, the company continually innovates to provide new and enhanced experiences for its users. With a strong emphasis on technology and connectivity, Meta Platforms aims to remain a key player in the social media landscape, driving engagement and interaction among individuals and businesses alike.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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