Investors are bracing for Meta’s fourth-quarter earnings report after the closing bell on Wednesday, with the tech giant set to unveil results in the middle of a difficult week for tech stocks.
Facebook’s parent may be a closer look this quarter after a sell-off of a major sale in the tech sector on Monday sparked a new style of AI that shook up the dominant bullfighting narrative of the U. S. market.
Meta dropped as much as 3% Monday amid a broader market rout brought on by DeepSeek, an AI app from a Chinese startup that’s challenged US investors’ assumptions about the technology. The stock managed to reverse its decline and rallied on Tuesday, trading nearly 3% higher at $677 a share.
“We worry about the deep around the global generation as in substance as a ‘false false head technology’ that will be of brief housing, because more major points and investigations are confronted with the depth model,” an analyst writing Tuesday Dan Ives wrote in a note. “We continue to see that this is an opportunity to buy gold that will not replace the spending trajectory of the AI Revolution. “
According to Bloomberg data, analysts expect a consistent benefit with a centenary of $ 6. 78 and a turnover of $ 46. 98 billion.
The investors will pay attention to key updates when they call Tech Titan profits, adding profit recommendation by 2025, their AI monetization plan and how the company can obtain advantages of the theater that surrounds Tiktok.
Here’s what Wall Street expects from the fourth-quarter effects report.
Meta could benefit from a slew of positive catalysts this year, Bank of America analysts said.
The bank said the tech company is still in the early stages of monetizing its AI projects and integrating AI into its messaging platforms, such as WhatsApp and Messenger.
Meta could also stand to benefit from any disruption to TikTok, with some companies potentially shifting to Meta to advertise. TikTok was estimated to take in around $12 billion in ad spending last year, BofA analysts said, citing an estimate from eMarketer.
Meta also said it would cut 5% of its workforce this year, which can only benefit margins.
“With a strong macro backdrop, an in-development contribution of AI to ad revenue, messaging revenue, and the rolling load field (recent staff reductions), we remain in stock in 2025,” the analysts added.
The bank reiterated its “buy” note in the action and construction of updates of its value at $ 710 according to the action, which reaches 4% of the construction at the existing levels.
The company has maintained its “higher market performance” note on the action and has issued a $ 750 objective, which implies a 10% building at existing levels.
The company will be a key beneficiary of the demanding Tiktok situations in the United States. According to Sensor Tower, a social media research site, Threads has noticed significant construction in user time in the fourth quarter, due to the final Tiktok threat, analysts said.
“We view META as a key beneficiary of TikTok’s mishaps and as one of our 2025 favorites,” Youssef Squali, a managing director at Truist, wrote in a note.
“Meta remains one of our favorite names that enter 2025, a positive position that is based on a sustained call for fed dynamics through forged products and profits to share executions, and superior margins despite the large investments in AI / Ml.
The company has reiterated its acquisition note on the action and value of courses of $ 700, which implies a 3 % construction at existing levels.
“We note that the ban on Tiktok transience deserves to be a potential backwind for the first quarter, but expect Meta to be likely conservative in the kitchen in its effect on the fluidity of the situation,” the company added.
Other checks are also positive for finishing perspectives. The company, for example, saw a strong expense in ads in October and November. They have also indicated that Instagram reels will be made if Tiktok is prohibited in the United States.
“In general, we continue to encourage the goal skill for DD Rev Growth, given the mixture of a superior commitment of AI investments, the greatest power of advertisers and the ramp of incremental monetization formats (for example, WhatsApp & Llama) “.
The company reiterated its acquisition note on the action and issued a $ 71five objective, which implies a five % construction at existing levels.
According to CFRA Research, Meta has announced its $60 billion in CAPEX this year to highlight its focus on synthetic intelligence.
“We believe that it is logical that Meta removes the news before earnings on January 29 and notes that the emphasis on AI will probably result in a superior source of prospective income over time,” Angelo Zino, an analyst in Senior Action, wrote in Cff, wrote.
“Investors will now be committed to the monetization efforts of the first quarter in 2025 and 2026”.
The company reiterated its “buy” score on the stock.
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