Meta Platforms (META) is likely to post Q4 results above consensus as analysts see upside potential on Reels momentum and artificial intelligence benefits, BofA Securities said in a note Wednesday.
The social networking and virtual reality company is set to report Q4 financial results following the market close Thursday.
Meta’s revenue for the three months ended Dec. 31 is seen rising 22% year-over-year to $39.3 billion, topping Street at $39.0 billion, BofA analysts said, adding “24% growth is possible.”
BofA also sees Meta’s per-share Q4 earnings at $5.18, exceeding Street’s $4.89, and is projecting revenue for the current quarter in a range of $32.0 billion to $34.5 billion, bracketing the $33.6 billion Street view.
“We remain constructive on Meta and see multiple tailwinds aiding (the) stock” during 2024, including upside potential for the company’s messaging platforms and its new artificial intelligence and machine learning integrations driving increased usage and advertising spending, BofA analysts wrote.
BofA Securities reiterated its buy rating and $425 price target for Meta shares.