Meta Platforms Q3 Preview: Facebook Parent Has 10 Straight Double Beats, Is Number 11 On The Way?

Core Viewpoint - Meta Platforms is expected to report strong third-quarter financial results, with significant revenue growth driven by AI-driven advertising gains and a bullish outlook from analysts [1][3][4]. Earnings Estimates - Analysts predict third-quarter revenue of $49.37 billion, an increase from $40.59 billion in the same quarter last year [1]. - Expected earnings per share (EPS) for the third quarter is $6.68, up from $6.03 year-over-year [2]. - Company guidance suggests third-quarter revenue will be between $47.50 billion and $50.5 billion [2]. Analyst Ratings and Expectations - Bank of America Securities maintains a Buy rating with a price target of $900, citing expanding AI infrastructure and anticipated double-digit revenue growth [3]. - Advertising revenue is expected to grow by 23% year-over-year in the third quarter [4]. - Analysts from Oppenheimer, Cantor Fitzgerald, UBS, and Wells Fargo have provided various ratings and adjusted price targets, indicating overall positive sentiment towards Meta [8]. Key Items to Watch - Investors will focus on Meta's spending and hiring practices, particularly in relation to AI investments and capital expenditures [6]. - Recent job cuts in the AI division may raise questions about future expenses, which were previously estimated between $114 billion and $118 billion for 2025 [9]. - Key metrics to monitor include ad impressions and average ad prices, which were reported to have increased by 11% and 9% year-over-year, respectively, in the second quarter [10]. Market Context - Meta's stock has seen a modest increase of 1.7% to $750.86, with a year-to-date rise of 25.3% [12]. - The company's performance is significant within the broader market, particularly as it is one of the largest-weighted stocks in the SPDR S&P 500 ETF Trust [10].