Facebook owner Meta is set to announce its second-quarter financial results on Wednesday after the opening bell. Analysts appear optimistic about the company’s Q2 performance, with JMP Securities Analyst Andrew Boone raising his price target on the company from $300 to $350.
Digital ads, artificial intelligence (AI), as well as the newly-launched Twitter competitor Threads, are of particular interest to observers, along with the company’s VR operation, Reality Labs.
“We believe Meta is in the early stages of benefiting from multiple product catalysts, including Reels, AI, and cost discipline,” Boone explained. “Specifically, Reels and improved recommendation algorithms are driving greater user engagement, and with models still improving, we expect Facebook and Instagram to continue to take share of user time.”
Wall Street expects Meta to report a revenue of $31.06 billion with earnings per share of $2.92. The company’s operating margin is expected to come in at 30.4%.