What To Expect From Meta in Upcoming Earnings as Analysts Raise

Meta Platforms' stock (NASDAQ: META) has been on many a watchlist in recent years, and this year appears to be no different, with the firm making headlines leading into tech earnings season. Meta recently announced fact checking will be halted in it's current form, and the company are also noted to be looking to lay off ~5% of low performers.

With earnings due less than 2 weeks away on Jan 29th, analysts have been weighing in with price targets adjustments, broadly to the upside.

Consensus estimates forecast earnings per share (EPS) to rise to $6.73, up from $5.33 last year, and $6.03 in the most recent quarter. Additionally, revenue is expected to climb 17% year-over-year, reaching $46.97 billion, up from $40.59 billion in the previous report.

Notably, Wells Fargo analyst Ken Gawrelski has increased the price target from $641 to $685 while maintaining an ‘Overweight' rating. This reflects an anticipated upside potential of more than 10% for Meta's stock.

In addition to Wells Fargo, Morgan Stanley and TD Cowen have also adjusted their price targets. Morgan Stanley has raised its target to $660, and TD Cowen revised its target from $695 to $675, suggesting a strong faith in Meta’s performance. A possible ban on TikTok in the U.S. could further benefit Meta’s Reels feature on its platforms, Facebook and Instagram, potentially driving user engagement.

While analysts express optimism about Meta's stock potential in the near term, retail investors remain reticent. The company’s upcoming earnings report and subsequent guidance will likely be scrutinised by investors to inform their strategies moving forward.