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Meta Platform's (META) Strong Threads Portfolio Drives Growth
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Meta Platform’s (META - Free Report) shares have surged 52.5% year to date compared with the Zacks Computer and Technology sector’s rise of 29.6%. The upside has been primarily driven by a robust portfolio, which includes Threads, Reels, Llama 2, Ray-Ban Meta smart glass and mixed reality device Quest 3.
Threads, since its launch has gained significant momentum. In the past year, it has garnered more than 175 million monthly active users. With more than 50 million topic tags created globally, the platform has fostered strong communities and friendly conversations.
Meta Platforms is successfully leveraging AI to boost engagement across its platforms including Threads, Facebook and Instagram. META’s AI recommendation system delivered 30% of the posts on the Facebook feed in first quarter of 2024. More than 50% of the content seen on Instagram is now AI-recommended.
Expanding Portfolio Aid META’s Prospects
META’s social media platform, Threads continues to evolve as a go-to platform for sharing diverse interests and perspectives in real-time, with a strong emphasis on user interaction through text, photos and videos.
India has become one of the most active countries for Threads with popular topics including film, TV, OTT content, celebrity conversations and sports, reflecting its role as a catalyst for fostering community and friendly conversations. This bodes well for META’s prospects in the country.
Further expanding its portfolio in June, Meta Platforms partnered with the National Association of Software and Service Companies (Nasscom) to launch an ‘AI Enablement for MSMEs’ program. The program aims to empower tech-enabled micro, small and medium enterprises in India through AI awareness, capacity building and access to resources.
META is also advancing its generative AI capabilities with Meta Llama, providing users with more interactive and personalized experiences.
In April, Meta Platforms announced that Meta Llama 3-powered Meta AI will be launched in English in more than a dozen countries outside the United States. Meta AI, the intelligent AI assistant, can be used on Facebook, Instagram, WhatsApp and Messenger.
META expects to invest significantly more over the next few years in developing more advanced models and the most extensive AI services in the world. However, monetization of these AI services will take considerable time, which is a concern for its top-line growth.
For second-quarter 2024, META expects total revenues to be between $36.5 billion and $39 billion, assuming an unfavorable forex impact of 1% to year-over-year revenue growth.
The Zacks Consensus Estimate for second-quarter 2024 revenues is currently pegged at $38.15 billion, indicating 19.22% year-over-year growth. The consensus mark for earnings is pegged at $4.66 per share, remained unchanged in the past 30 days.
Image: Bigstock
Meta Platform's (META) Strong Threads Portfolio Drives Growth
Meta Platform’s (META - Free Report) shares have surged 52.5% year to date compared with the Zacks Computer and Technology sector’s rise of 29.6%. The upside has been primarily driven by a robust portfolio, which includes Threads, Reels, Llama 2, Ray-Ban Meta smart glass and mixed reality device Quest 3.
Threads, since its launch has gained significant momentum. In the past year, it has garnered more than 175 million monthly active users. With more than 50 million topic tags created globally, the platform has fostered strong communities and friendly conversations.
Meta Platforms is successfully leveraging AI to boost engagement across its platforms including Threads, Facebook and Instagram. META’s AI recommendation system delivered 30% of the posts on the Facebook feed in first quarter of 2024. More than 50% of the content seen on Instagram is now AI-recommended.
Expanding Portfolio Aid META’s Prospects
META’s social media platform, Threads continues to evolve as a go-to platform for sharing diverse interests and perspectives in real-time, with a strong emphasis on user interaction through text, photos and videos.
India has become one of the most active countries for Threads with popular topics including film, TV, OTT content, celebrity conversations and sports, reflecting its role as a catalyst for fostering community and friendly conversations. This bodes well for META’s prospects in the country.
Further expanding its portfolio in June, Meta Platforms partnered with the National Association of Software and Service Companies (Nasscom) to launch an ‘AI Enablement for MSMEs’ program. The program aims to empower tech-enabled micro, small and medium enterprises in India through AI awareness, capacity building and access to resources.
META is also advancing its generative AI capabilities with Meta Llama, providing users with more interactive and personalized experiences.
In April, Meta Platforms announced that Meta Llama 3-powered Meta AI will be launched in English in more than a dozen countries outside the United States. Meta AI, the intelligent AI assistant, can be used on Facebook, Instagram, WhatsApp and Messenger.
META expects to invest significantly more over the next few years in developing more advanced models and the most extensive AI services in the world. However, monetization of these AI services will take considerable time, which is a concern for its top-line growth.
For second-quarter 2024, META expects total revenues to be between $36.5 billion and $39 billion, assuming an unfavorable forex impact of 1% to year-over-year revenue growth.
The Zacks Consensus Estimate for second-quarter 2024 revenues is currently pegged at $38.15 billion, indicating 19.22% year-over-year growth. The consensus mark for earnings is pegged at $4.66 per share, remained unchanged in the past 30 days.
Zacks Rank & Stocks to Consider
Currently, META carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Arista Networks (ANET - Free Report) and Dropbox (DBX - Free Report) , each sporting a Zacks Rank #1(Strong Buy), while Garmin (GRMN - Free Report) carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Arista Networks’ shares have gained 55.5% in the year-to-date period. The long-term earnings growth rate for ANET is pegged at 16.07%.
Garmin’s shares have gained 26% in the year-to-date period. The long-term earnings growth rate for GRMN is pegged at 8.04%.
Shares of Dropbox have declined 24.3% in the year-to-date period. The long-term earnings growth rate for DBX is pegged at 11.44%.