Meta shares reach new highs ahead of earnings

Meta Platforms Inc (NASDAQ: META) stock hit a record high this week, capping off a meteoric surge over the past year. The social media giant is slated to report fourth-quarter financial results on February 1st, with analysts forecasting earnings per share of $4.95 on revenue of $39 billion.

Meta’s user growth, engagement metrics, and ad monetisation strategies have powered its stock rally, despite a turbulent macro environment. The company’s focus on innovating features like Reels has boosted daily user engagement. Meanwhile, advanced AI tools have made ad targeting more precise, lifting ad prices.

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However, Meta warned of slower growth ahead. While digital ad spending remains robust for now, analysts expect revenue expansion to decelerate as traditional channels dry up. This, along with projected US economic sluggishness, may cap the upside. Operationally, Meta plans to optimise productivity over headcount growth.

META shares are up 167% over the past year. The stock trades flat on the day at $383.18. Investors are keen to see whether Meta’s coming results validate its premium valuation. Strong user and revenue growth may spur more upside.