Social media giant Meta Platform (META) is scheduled to announce its results for the fourth quarter of 2024 after the markets close on Wednesday, January 29. Investors will focus on the extent to which the company’s revenue growth is benefiting from its massive artificial intelligence (AI) investments. Wall Street expects META’s Q4 EPS to rise about 27% year-over-year to $6.76.
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They expect Meta Platform’s revenue to increase by 17% to $46.99 billion, driven by solid ad spending and integration of AI across the company’s offerings.
Analysts’ Views Ahead of Meta’s Q4 Earnings
On Monday, Evercore ISI analyst Mark Mahaney reiterated a Buy rating on META stock with a price target of $700. He expects Meta Platforms to report a modest beat and views the Street’s Q4 revenue growth estimate of 17% as reasonable. Mahaney sees the possibility of slightly more upside than downside, with Evercore’s ad channel checks suggesting a consistently strong overall internet ad environment. He also cited favorable channel checks on demand and return on ad spending (ROAS) at Meta Platforms.
Likewise, Bank of America Securities analyst Justin Post reaffirmed a Buy rating on Meta Platforms stock with a price target of $710. Post thinks that the company’s Al-driven ad improvements still have several quarters to show results.
For 2025, the analyst expects expanding AI/ machine learning (ML) capabilities to drive higher ROAS and ad spending. He also anticipates that Meta Platforms will benefit from rising short-form video (SFV) usage, improving video platform monetization, increasing messaging revenues, and monetization of untapped avenues like Threads, Meta Al, and Marketplace. Also, Post believes that Meta’s growing AI capabilities could fuel positive product surprises this year.
Options Traders Expect a Major Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 7.5% move in either direction in reaction to Meta Platform’s Q4 2024 results.
Is META Stock a Good Buy?
Overall, Wall Street is bullish on Meta Platforms stock, with a Strong Buy consensus rating based on 40 Buys, three Holds, and one Sell recommendation. At $692.23, the average META stock price target implies about 5% upside potential. Shares have rallied more than 67% over the past year.
