Meta Platforms is scheduled to release its Q1 2025 earnings on April 30. Analysis from Morningstar suggests that the firm is undervalued and trading in the 4-star range. Investors will be watching closely for updates on ad monetization, management's outlook on tariffs affecting ad spend and the firmâs capital expenditure plans for 2025. Additionally, there are expectations around genAI monetization impacting valuations, especially as competition remains strong. Meta's stock is currently rated as trading at an attractive price compared to long-term estimates.
Management's commentary on the potential impact of tariffs on digital advertising spend will be important.
We expect a key valuation driver will be genAI monetization, and clear progress on this front will certainly help investors re-rate the stock higher.
Right now, it is trading close to a market multiple (20 times forward earnings). Can the firm offset margin pressure from higher depreciation?
Despite the headline risk, the government's case against Meta is materially weaker than its cases against Alphabet.
Collection
[
|
...
]