Meta Set to Report Earnings, Traders Expect Significant Stock Movement
Meta Platforms (META) is set to report its quarterly earnings after market close on Wednesday. Options pricing indicates traders anticipate a potential stock movement of up to 7% in either direction by the end of the week. Analysts expect Meta to show revenue growth but only modest profit increases due to significant investments in AI infrastructure. Meta's shares have declined 10% year-to-date, despite solid quarterly results being overshadowed by concerns over rising capital expenditures on its AI initiatives. Recent reports suggest that Meta may explore selling excess compute capacity to other companies, a topic likely to be discussed during the earnings call. This week’s Magnificent 7 earnings could test investor confidence in the AI sector following recent declines at Tesla and Alphabet. Deutsche Bank analysts maintain a 'buy' rating with an $800 price target for Meta shares. Visible Alpha estimates forecast second-quarter revenue of $60.23 billion, up from last year by about 27%, while earnings per share are expected to rise slightly to $7.19.
Tickers: $META