Meta Platforms, the parent company of Facebook, is set to announce its Q3 2024 financial results on October 31, 2024.
Analysts predict a year-on-year revenue increase of 17.9%, with projected earnings of approximately $40.3 billion. This upcoming report is significant as it marks the second consecutive quarter of revenue growth slowdown for Meta.
In Q2 2024, Meta outperformed Google in advertising sales, with a growth rate of 22% compared to Google's 11%. This trend highlights Meta's strategic investments in artificial intelligence (AI) to enhance its advertising capabilities.
Investors are particularly interested in how Meta's investment in AI, specifically the Llama series of models, will translate into revenue growth. Meta has allocated between $37 billion and $40 billion for capital expenditures in 2024, with the Llama 4 model set to debut in 2025. The company's ability to effectively manage these investments and demonstrate a clear path to profitability will be crucial for maintaining investor confidence.
Key performance metrics such as Family daily active people, ad impressions, and average price per ad will be closely scrutinized to assess the effectiveness of Meta's advertising strategies.
From a technical perspective, Meta's stock exhibits a bullish bias, supported by indicators such as the daily Ichimoku Cloud and the 200-day moving average. Investors are advised to consider buying on dips, with support levels at $539.16 and $480.20. A breakout above the psychological resistance level of $600.00 could lead to further gains.
The upcoming earnings report will provide insights into Meta's financial health and the broader digital advertising landscape.