Meta puts the spotlight on spending in latest earnings report post-market on Wednesday.

Welcome to Extreme Investor Network, where we bring you the latest insights and analysis on all things investing. Today, we’re diving into the world of technology stocks and the upcoming earnings report from Meta Platforms.

This month’s pullback in technology stocks has put the spotlight on Meta Platforms as investors eagerly await its second-quarter results. Analysts are expecting the social media giant to earn $4.73 per share on $38.3 billion in revenue. But what investors are really interested in is the company’s capital expenditures, particularly in the realm of artificial intelligence.

The heightened focus on AI spending follows Alphabet’s recent earnings report, which showed rising expenses that ultimately led to a sell-off in the tech sector. Meta’s shares have already taken a hit, down more than 6% in July. However, there is optimism on the horizon.

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Analysts predict that Meta will have capital expenditures of $9.5 billion for the quarter, with expectations of between $35 billion and $40 billion for the year. And with a continued emphasis on AI projects like Llama, some analysts see a path to significant free cash flow by 2026.

In addition to AI investments, Wall Street is also keeping a close eye on advertising figures this quarter. Despite the uncertainties in the market, analysts believe that Meta is well-positioned to weather any challenges and capitalize on opportunities, especially with the upcoming election and Olympics expected to drive ad spend.

As we await Meta’s earnings report, analysts like Wells Fargo’s Ken Gawrelski are hopeful that investors will gain a better understanding of the company’s outlook. With potential positive surprises in areas like Reels, Messaging, and AI, Meta could see a boost in revenue and overall performance in the coming quarters.

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At Extreme Investor Network, we pride ourselves on providing unique insights and analysis that go beyond the headlines. Stay tuned for more updates on Meta Platforms and other investing trends that can help you make informed decisions in the market.

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