[Financial Results Preview] Can Meta increase in sales and profit again with generative AI?
This article uses automatic translation for some of its parts
●Rice $Meta Platforms (META.US)$(formerly Facebook)After closing on 4/24 EST（Early morning on the 25th Japan timeWe plan to announce financial results for the 24Q1 (fiscal year ending January-March) on).
● According to market consensus, Meta's first quarter sales were compared to the same period last year$36.156 billion, up 26.22%, EPS compared to the same period last year$4.31, up 95.99%It is expected.
![[Financial Results Preview] Can Meta increase in sales and profit again with generative AI?](https://sgsnsimg.moomoo.com/sns_client_feed/181250687/20240419/6ba7ad3d1493c2de3964e7d224f54912.png/big?area=105&is_public=true)
Meta achieved advertising business sales of 38.76 billion dollars and a group-wide service DAU of 3.19 billion people in 23Q4. The company also announced an additional share buyback of 7 trillion yen and its first quarterly dividend plan. Our large investment in artificial intelligence (AI) paid off, showing steady profit growth and cash flow.
Meta's stock price has achieved a year-on-year rate of increase of approximately 125% over the past 12 months, and is significantly outperforming the stock market as a whole in 2024.
According to Moomoo data, the market forecast for Meta's first quarter financial results is that sales are expected to be 36.156 billion dollars, up 26.22% from the same period last year, and EPS is expected to be 4.31 dollars, up 95.99% from the same period last year.
Also, Wall Street analysts expect Meta's 2024 sales to increase 17% from the previous year, and EPS to be 20.02 dollars (35% increase from the previous year). Therefore, the PER ratio for 2024 meta is 26 times. $Amazon (AMZN.US)$43.92 times, $Netflix (NFLX.US)$37.04 times, $NASDAQ 100 Index (.NDX.US)$It is well below 29.54 times. Meanwhile, when considering profit growth of 30% or more this fiscal year, Meta's PEG ratio is only 0.7 times.
![[Financial Results Preview] Can Meta increase in sales and profit again with generative AI?](https://sgsnsimg.moomoo.com/sns_client_feed/181250687/20240419/7f53189bb7c0b5e94f60ed3f08ea9a22.jpg/big?area=105&is_public=true)
● Meta is demonstrating not only the ability to improve user engagement using AI, but also ad targeting and ad analysis systems. The company has established its position as an AI company in a way that other companies have yet to achieve. The company announced the latest generative AI (artificial intelligence) basic technology “Llama 3” on the 18th. It can be directly called up and used from SNS such as the dialogue application “messenger” or the image sharing application “Instagram.”
● The ban on TikTok in the US may bring benefits to meta. There is a possibility that TikTok users will migrate to a platform operated by Meta, and it is also conceivable that it will lead to an increase in meta engagement and advertising revenue.
● Meta is investing large sums of money into the metaverse. If the metaverse becomes widely popular, it is also possible to develop new revenue sources through virtual advertisements, in-app purchases, and e-commerce within the virtual world.
● META currently holds more than 65 billion dollars in cash, and there is a possibility that it will achieve a higher growth rate through acquisitions.
● Meta, which is a growth stock, is sensitive to changes in capital costs. Uncertainty about what kind of action the Fed will show next with regard to monetary policy is a risk for Meta.
● Meta is facing opposition from regulators. The European Union (EU) began full application of the “Digital Market Law (DMA)” in March. European authorities have also begun a formal investigation into meta.
● Investment risks in the metaverse are high.
● Concerns about the tense situation in the Middle East.
ー Moo Moo News Citron
Source: Bloomberg, SeekingAlpha, Nikkei Shimbun, moomoo
This article uses automatic translation for some of its parts
Source: Bloomberg, SeekingAlpha, Nikkei Shimbun, moomoo
This article uses automatic translation for some of its parts
![[Financial Results Preview] Can Meta increase in sales and profit again with generative AI?](https://sgsnsimg.moomoo.com/sns_client_feed/181250687/20240402/1712013733110-cb72a3c00e.png/big?area=105&is_public=true)
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exera : I wonder if advertising is now the trend of the times everywhere![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
にっち2 : Fraudulent advertisement problem, they've really left it unattended and hit a lot, but I wonder where the wind is blowing at all. If you don't do it properly around here, it seems like every advertisement will lose credibility and proper ads won't come.
wwolfvct : It's full of fraudulent ads!
▲I wish it had a big crash!
181086746 : Speaking of fraudulent communications, I'm not saying which country, but that's because there are people like Tondemoni who use public radio waves on TV and radio to make ridiculous reports.
First of all, the Ministry of Internal Affairs and Communications must put an iron hammer in, etc.
(^^