This month's pullback in technology stocks puts the pressure on Meta Platforms to wow investors when it reports results, and prove that its ambitious artificial intelligence visions are worth the steep investment. Analysts expect the social media giant to earn $4.73 per share on $38.3 billion in revenue when it reports second-quarter results after the bell Wednesday.
mountain Meta shares this month The intensified attention toward AI spending comes on the heels of Alphabet's quarterly print and during a "make-or-break" week with earnings from four tech behemoths. While Alphabet topped Wall Street estimates, its rising expenses spurred a sell-off across the sector. Meta's shares are already down more than 6% in July, with a more than 2% slide last week. There is a silver lining.
mountain Share performance this year The upcoming election and Olympics in Paris could prove a tailwind for the company by boosting cost-per-minute figures, said Deutsche Bank's Benjamin Black. This setup underpins his confidence in the company reporting near the "high-end" of its second-quarter forecast. A potential TikTok ban in the new year could also bode well for advertising, added Bank of America's Justin Post.