Meta Platforms reported second-quarter earnings exceeding expectations, with revenue of $47.5 billion surpassing the consensus estimate of $44.8 billion. The company's advertising revenue grew by 22%, pushing GAAP operating income to $25.7 billion and earnings per share to $7.14. Analysts from Bank of America increased their stock price target for Meta, citing strong growth potential driven by AI investments. Guidance for the third quarter projects revenue between $47.5 billion and $50.5 billion, indicating year-over-year growth of 17% to 24% due to enhanced user engagement and improved ad conversion rates.
Meta's second-quarter revenue of $47.5 billion exceeded Wall Street's consensus estimate of $44.8 billion, driven by a two-point acceleration in advertising revenue growth to 22%.
Looking ahead, projected revenue for the third quarter ranges between $47.5 billion and $50.5 billion, indicating year-over-year growth of 17% to 24%.
Meta's substantial investment in AI has proven to be a key factor in driving both user engagement and advertising revenue higher, as shown by increased user interaction.
Analysts raised their revenue and earnings estimates for Meta due to its strong financial results and outlook, reflecting the significant potential of AI investments.
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