6,354
edits
Meta Platforms:Quarterly Results/2025 Q1: Difference between revisions
Meta Platforms:Quarterly Results/2025 Q1 (view source)
Revision as of 20:11, 15 April 2025
, 15 April→Analysts opinions and insights
| Line 12: | Line 12: | ||
* Buy, $750->$675: Guggenheim [https://www.investing.com/news/analyst-ratings/guggenheim-cuts-meta-platforms-price-target-to-675-keeps-buy-rating-93CH-3973486 expects] Meta's Q1 2025 advertising revenue to come in above management's upper guidance of $39.8-$41.8 billion. The analysts cited Apptopia data which indicate robust user engagement in Facebook and Instagram. It indicates that Facebook's user time grew 9.3%, an improvement from 6.5% in Q4, while Instagram witnessed a 5.9% growth, recovering from a 1.0% decline. | * Buy, $750->$675: Guggenheim [https://www.investing.com/news/analyst-ratings/guggenheim-cuts-meta-platforms-price-target-to-675-keeps-buy-rating-93CH-3973486 expects] Meta's Q1 2025 advertising revenue to come in above management's upper guidance of $39.8-$41.8 billion. The analysts cited Apptopia data which indicate robust user engagement in Facebook and Instagram. It indicates that Facebook's user time grew 9.3%, an improvement from 6.5% in Q4, while Instagram witnessed a 5.9% growth, recovering from a 1.0% decline. | ||
* Overweight, $775->$610: Piper Sandler [https://thefly.com/permalinks/entry.php/id4103861/8656276159/META-Meta-Platforms-price-target-lowered-by--at-Piper-Sandler-heres-why said] their checks with an Ad Buyer were considered the best in the group. | * Overweight, $775->$610: Piper Sandler [https://thefly.com/permalinks/entry.php/id4103861/8656276159/META-Meta-Platforms-price-target-lowered-by--at-Piper-Sandler-heres-why said] their checks with an Ad Buyer were considered the best in the group. | ||
* Evercore [https://seekingalpha.com/news/4430814-evercore-gives-a-rundown-on-internet-stocks-ahead-of-q1-report said] they view the street's Q1 revenue estimates of +14% y/y as reasonable. They said their ad checks indicate fairly stable ad demand environment across most channels. They added that channel checks on ad demand and ROAS trends were positive for Meta. | |||
==== Q2 and 2025 guidance will likely be weak ==== | ==== Q2 and 2025 guidance will likely be weak ==== | ||
| Line 18: | Line 19: | ||
* Guggenheim [https://www.investing.com/news/analyst-ratings/guggenheim-cuts-meta-platforms-price-target-to-675-keeps-buy-rating-93CH-3973486 said] they revised their industry-wide ad demand growth projection for 2025 to 12.5% from 15.1% due to anticipated deceleration in the sector. | * Guggenheim [https://www.investing.com/news/analyst-ratings/guggenheim-cuts-meta-platforms-price-target-to-675-keeps-buy-rating-93CH-3973486 said] they revised their industry-wide ad demand growth projection for 2025 to 12.5% from 15.1% due to anticipated deceleration in the sector. | ||
* Piper Sandler [https://thefly.com/permalinks/entry.php/id4103861/8656276159/META-Meta-Platforms-price-target-lowered-by--at-Piper-Sandler-heres-why said] the focus is now on Q2 guidance, where it expects revenue in the range of $42.5 billion and $45.5 billion (9-16.5%). It also expects management to reiterate its operating expenses for 2025 ($114-$119 billion), alongside capex at $60-$65 billion. Piper Sandler pointed out that they lowered their revenue estimate for 2025 and 2026 by 2% and 4% respectively, due to exposure to China. | * Piper Sandler [https://thefly.com/permalinks/entry.php/id4103861/8656276159/META-Meta-Platforms-price-target-lowered-by--at-Piper-Sandler-heres-why said] the focus is now on Q2 guidance, where it expects revenue in the range of $42.5 billion and $45.5 billion (9-16.5%). It also expects management to reiterate its operating expenses for 2025 ($114-$119 billion), alongside capex at $60-$65 billion. Piper Sandler pointed out that they lowered their revenue estimate for 2025 and 2026 by 2% and 4% respectively, due to exposure to China. | ||
* Overweight, $710->$645: keyBanc [https://thefly.com/permalinks/entry.php/id4103089/5489276161/META-Meta-Platforms-price-target-lowered-by--at-KeyBanc-heres-why said] their ad checks are deteriorating, with budget growth expectations now landing in the 3%-5% range. Although they expect digital ad spend to outpace the market by 2-3 turns, they are incrementally cautious that ripple effects on supply chains and consumer spending could impact margins and EPS. | |||
* Buy, $765->$640: Bofa [https://thefly.com/permalinks/entry.php/id4102898/5489276161/META-Meta-Platforms-price-target-lowered-by--at-BofA-heres-why said] channel checks conducted in mid-March indicate pressure on ad spending will materialize due to the negative headlines and the latest tariff announcements. Bofa lowered 2025 ad spend estimates by about 4%. They lowered Meta's 2025 and 2026 revenues by roughly 4% and EPS estimates by 5%-7% due to deeper ad auctions, higher mix of direct ad response and 2%-3% foreign exchange benefit. | |||