Shares of social media giant Meta Platforms, Inc. (NASDAQ:META) were surging higher in premarket trading on Thursday.
The strong upward momentum has come on the back of the company’s second-quarter results that exceeded expectations. The company’s revenue rose 11% to $32 billion, exceeding the $28.13 billion consensus estimate. This marked the first double-digit revenue growth since the fourth quarter of 2021.
The earnings per share of $2.98 also came in above the $2.63 Street estimate. All user metrics improved year-over-year.
The company guided to third-quarter revenue of $32 billion – $34.5 billion, notably higher than the consensus estimate of $28.29 billion.
“The year of cost-cutting is over, and Meta is now focused on efficiency growth,” said Deepwater Asset Management’s Gene Munster.
“The company will unveil new artificial intelligence products, such as creative tools for Instagram and the metaverse, at their Connect conference on Sept. 27,” said Munster.
Following the earnings print, a slew of analysts have raised the price target for the stock.
- Baird upped the price target from $330 to $355.
- Bernstein upwardly adjusted the price target from $350 to $375.
- Canaccord Genuity increased the price target from $360 to $375.
- Jefferies upped the price target from $360 to $400.
- Oppenheimer’s price target went up from $350 to $380.
- Piper Sandler increased the price target from $310 to $365.
- RBC Capital Markets upped the price target from $330 to $400.
- TD Cowen’s price target was nudged up from $345 to $365.
In premarket trading on Thursday, Meta shares rallied 8.92% to $26.62, according to Zenger News Pro data.
According to Bloomberg, Meta Platforms, Inc. operates as a social technology company. The Company builds applications and technologies that help people connect, find communities, and grow businesses. Meta Platform is also involved in advertisements, augmented, and virtual reality.
Information from Wikipedia shows that the company owns and operates Facebook, Instagram, Threads, and Whatsapp, among other products and services. It is considered one of the Big Five American information technology companies, alongside Google’s parent company Alphabet, Amazon, Apple, and Microsoft.
Produced in association with Benzinga
Edited by Priscilla Jepchumba and Judy J. Rotich