Why Meta Platforms Stock Was Trouncing the Market Today
Meta Platforms' share price rose nearly 3% after a reassuring analyst note from Bank of America reiterated a buy recommendation, citing potential upside and underperformance.
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Posted 8/23/2023, 7:13:29 PM
fool.com
Relevant topic timeline:
- Meta Platforms (formerly Facebook) reported 11% growth in revenue for the second quarter, outperforming Google in ad growth.
- The company projected third quarter growth of up to 24.5%, which would be the first time since late 2021 that Meta has achieved 20% or more growth.
- Meta's stock rose as much as 8% in after-hours trading, reaching its highest point since February 2022.
- However, the improvement in Meta's business is partly due to diminished foreign exchange pressures, which weighed on revenues last year.
- The third quarter projection assumes that the dollar will add three percentage points to reported growth.
The article mentions Meta (NASDAQ:META) stock. The author does not explicitly give a recommendation to buy, hold, or sell the stock.
The author's core thesis is that Meta has experienced a remarkable turnaround, with revenue accelerating, margins improving, and positive outlook. The key information and data provided include Meta's revenue growth in Q2, the improvement in advertising revenue from its Family of Apps, the growth in Family Monthly Active People, the increase in ad impressions and decrease in average price per ad, the progress in Reels engagement and monetization, the profitability and financial health of Meta, the company's outlook for Q3, and the valuation of Meta stock.
Citi analyst predicts that Meta Platforms stock could see significant gain in the next three months due to advertising and artificial intelligence.