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Meta Platforms:Quarterly Results/2025 Q1: Difference between revisions
Meta Platforms:Quarterly Results/2025 Q1 (view source)
Revision as of 13:39, 16 April 2025
, 16 April→Analysts opinions and insights
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* 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. | * 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. | ||
* Overweight, $790->$624: Analyst Deepak Mathivanan of Cantor Fitzgerald [https://www.investing.com/news/analyst-ratings/cantor-fitzgerald-cuts-meta-platforms-stock-target-to-624-93CH-3987963 said] Meta's Q1 earnings will likely align with the company's high-end guidance. He said they noticed a slight slowdown in March, but this will be offset by favorable foreign exchange rates. | |||
==== Q2 and 2025 guidance will likely be weak ==== | ==== Q2 and 2025 guidance will likely be weak ==== | ||
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* 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. | * 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. | * 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. | ||
* Cantor Fitzgerald [https://www.investing.com/news/analyst-ratings/cantor-fitzgerald-cuts-meta-platforms-stock-target-to-624-93CH-3987963 said] Q2 guidance may not meet consensus at the higher range, which is expected to be $44.4 billion (+14% y/y). The guidance considers the company's exposure to the tariffs. They project Q2 revenue growth of 9% and second-half revenue growth of 7% y/y. Cantor Fitzgerald expects Meta to reiterate its full-year operating expenses and capital expenditure. | |||
==== Chinese advertisers have cut ad spend ==== | |||
* Citing the Information and Search Engine Land, Mizuho [https://www.investing.com/news/analyst-ratings/mizuho-cites-chinese-ad-cuts-competition-in-meta-stock-outlook-93CH-3986549 pointed out] that Chinese advertisers have reduced their ad spend due to the tariffs. | |||