Meta Q2 Earnings: What Else Zuckerberg's 'Year of Efficiency' Has in Store?
Investing.com | Jul 26, 2023 15:30
- Meta is set to report earnings today
- What's next for Zuckerberg's "year of efficiency" plans?
- Meta has a 10.6% potential upside according to InvestingPro's fair value models
After the U.S. market closes today, it's Meta's (NASDAQ:META) turn to report earnings.
This week is brimming with economic events, from the Fed and ECB interest rate decisions to big players like Microsoft (NASDAQ:MSFT), Amazon.com (NASDAQ:AMZN), and Alphabet (NASDAQ:GOOGL) reporting earnings - all happening in the space of just 72 hours.
Notably, the Threads has already attracted a staggering 100 million users in just one week. That's an impressive feat, surpassing even ChatGPT in user numbers.
With these numbers, Instagram's social network has come to compete directly with Elon Musk's Twitter or 'X.' However, the latest reports indicate that, after the initial interest, the active user base and engagement have not grown as anticipated.
It seems that Zuckerberg's company could achieve better-than-expected results, just like it did in the first quarter of 2023.
Source: InvestingPro
However, even though the analysts have raised their earnings-per-share expectations for this quarter by 4% over the last 12 months (going from 2.78 to 2.89), the estimated profit isn't as positive.
In fact, they have downgraded their revenue expectations for this quarter by -6.4%, going from $33.159 billion to $31.030 billion over the same period.
Source: InvestingPro
Interestingly, after 4 out of the last 5 quarterly earnings, Meta's stock has gained. However, there was one exception in October 2022, when the company's stock value took a considerable hit, experiencing a decline of -28.7%.
Get The App
Source: InvestingPro
Ahead of Meta's earnings, we need to take into account the analyst insights and the conclusions drawn from various valuation models.
Source: InvestingPro
InvestingPro models indicate that Meta has a potential upside of 10.6% from the current price levels. The stock can still rally to $331.75 before it becomes overvalued.
Source: InvestingPro
The stock's remarkable 144% year-to-date rally can be attributed to the company's proactive cost-cutting measures. Now, as we eagerly await their upcoming results, we'll be on the lookout for any hints about whether they're done with layoffs or if there could be more job cuts in 2023.
Let's keep in mind that Mark Zuckerberg labeled 2023 as the "year of efficiency." Investors will undoubtedly seek more details about all the additional measures the company is taking to enhance efficiency.
Disclaimer: This article is written for informational purposes only; it is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation, advice, counseling, or recommendation to invest. We remind you that all assets are considered from different perspectives and are extremely risky, so the investment decision and the associated risk are the investor's own.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.