Meta Earnings: Will Its AI & Metaverse Investments Payoff?

Core Viewpoint - Meta Platforms is set to report earnings, with expectations of significant stock movement based on the results, which could either lead to a gap up or gap down in stock price [2][3]. Earnings Expectations - The company is anticipated to report earnings of $5.83 per share on revenue of $44.69 billion, with a Whisper number of $6.18 per share [3]. Historical Earnings Performance - Meta's earnings have shown substantial growth over the years: $9.78 in 2020, $13.77 in 2021, a drop to $8.59 in 2022, followed by a rise to $15.56 in 2023, $23.86 in 2024, and projected growth to $25.78 in 2025 and $28.48 in 2026. The current price-to-earnings ratio stands at 27, which is 1.1 times that of the S&P 500 [4]. Technical Analysis - The stock recently reached a record high and is currently trading 6% below this peak, indicating bullish sentiment. Key support levels are identified at the 50-day and 200-day moving averages [5]. Company Overview - Meta Platforms, Inc. focuses on developing products that facilitate connections and sharing among users through various platforms, including mobile devices and virtual reality [6][8]. Segment Breakdown - The company operates in two segments: - Family of Apps, which includes Facebook, Instagram, Messenger, and WhatsApp [7]. - Reality Labs, which offers augmented and virtual reality products [8].