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Meta Platforms:Quarterly Results/2025 Q2: Difference between revisions
→Analysts opinions and insights
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== Analysts opinions and insights == | == Analysts opinions and insights == | ||
=== Ad checks were positive during the quarter === | |||
* Overweight, $735->$795: JP Morgan [https://thefly.com/landingPageNews.php?id=4157688&headline=META-Meta-Platforms-price-target-raised-by--at-JPMorgan-heres-why&utm_source=https://thefly.com/news.php%3fsymbol=META&utm_medium=referral&utm_campaign=referral_traffic said] the updated price targets reflect better channel checks and favorable currency moves. | |||
* Buy, $620->$740: Roth Capital [https://thefly.com/permalinks/entry.php/id4155304/4274275786/META-Meta-Platforms-price-target-raised-by--at-Roth-Capital-heres-why said] they have a positive bias towards the broader ad ecosystem as we approach Q2 earnings season. | |||
* TD Cowen [https://thefly.com/landingPageNews.php?id=4155872&headline=META-Meta-Platforms-price-target-raised-by--at-TD-Cowen-heres-why&utm_source=https://thefly.com/news.php%3fsymbol=META&utm_medium=referral&utm_campaign=referral_traffic said] their Q2 digital advertising expert check showed accelerating spend growth across Meta Platforms. | |||
* Overweight, $664->$783: Wells Fargo [https://thefly.com/permalinks/entry.php/id4155285/4274275786/META-Meta-Platforms-price-target-raised-by--at-Wells-Fargo-heres-why said] ad checks are healthy. | |||
* Underperform->Hold: Needham [https://thefly.com/permalinks/entry.php/id4153762/5629276161/META-Meta-Platforms-just-upgraded-at-Needham-heres-why said] channel checks are driving upside to Meta's estimates. | |||
* Overweight, $808: Piper Sandler [https://www.investing.com/news/analyst-ratings/meta-platforms-stock-rating-reiterated-at-overweight-by-piper-sandler-93CH-4132295 said] their channel checks for Meta were the "best in the group". | |||
* Outperform, $665->$775: Oppenheimer [https://www.investing.com/news/analyst-ratings/meta-stock-price-target-raised-to-775-from-665-at-oppenheimer-93CH-4097132 said] advertising environment has improved and they expect digital advertising growth of 10% and 12% in 2025 and 2026 respectively. | |||
=== Macro and tariff uncertainty has eased === | |||
* Roth Capital [https://thefly.com/permalinks/entry.php/id4155304/4274275786/META-Meta-Platforms-price-target-raised-by--at-Roth-Capital-heres-why believes] easing macro and tariff uncertainty is reflected in Meta's current valuation. | |||
* Overweight, $664->$783: Wells Fargo [https://thefly.com/permalinks/entry.php/id4155285/4274275786/META-Meta-Platforms-price-target-raised-by--at-Wells-Fargo-heres-why said] it is raising estimates due to temporary tariff reprieve. | |||
=== Analysts expects Meta to report solid results for Q2 === | |||
* Buy, $700->$800: TD Cowen [https://thefly.com/landingPageNews.php?id=4155872&headline=META-Meta-Platforms-price-target-raised-by--at-TD-Cowen-heres-why&utm_source=https://thefly.com/news.php%3fsymbol=META&utm_medium=referral&utm_campaign=referral_traffic expects] Meta to beat Q2 consensus estimates and projects revenue growth of 16% y/y, 2% above the expectations due to continued video monetization and engagement. | |||
==== Analysts welcomed Meta's recent product launches ==== | ==== Analysts welcomed Meta's recent product launches ==== | ||
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* Outperform, $635->$740: Baird [https://www.investing.com/news/analyst-ratings/meta-platforms-stock-price-target-raised-to-740-from-635-at-baird-93CH-4120932 said] (July 02) recent product launches across WhatsApp and Messenger represents an "important step" to unlock incremental revenue. It estimates '''click-to-message (CTM) ads are approaching $15-20 billion run rate while WhatsApp ads could bring in additional $10 billion over many years'''. They estimate additional subscriptions and fees could bring in another $10 billion, creating total messaging monetization opportunity of $40-$50 billion by 2030. | * Outperform, $635->$740: Baird [https://www.investing.com/news/analyst-ratings/meta-platforms-stock-price-target-raised-to-740-from-635-at-baird-93CH-4120932 said] (July 02) recent product launches across WhatsApp and Messenger represents an "important step" to unlock incremental revenue. It estimates '''click-to-message (CTM) ads are approaching $15-20 billion run rate while WhatsApp ads could bring in additional $10 billion over many years'''. They estimate additional subscriptions and fees could bring in another $10 billion, creating total messaging monetization opportunity of $40-$50 billion by 2030. | ||
* Overweight, $664: '''Wells Fargo [https://www.investing.com/news/analyst-ratings/meta-stock-price-target-maintained-by-wells-fargo-on-whatsapp-ad-potential-93CH-4098476 sees] (June 17) WhatsApp ads bringing in $6 billion in additional revenue'''. They expect WhatsApp to finally achieve cost-per-thousand impressions (CPMs) and ad load as those seen in Instagram. | * Overweight, $664: '''Wells Fargo [https://www.investing.com/news/analyst-ratings/meta-stock-price-target-maintained-by-wells-fargo-on-whatsapp-ad-potential-93CH-4098476 sees] (June 17) WhatsApp ads bringing in $6 billion in additional revenue'''. They expect WhatsApp to finally achieve cost-per-thousand impressions (CPMs) and ad load as those seen in Instagram. | ||
* Roth Capital [https://thefly.com/permalinks/entry.php/id4155304/4274275786/META-Meta-Platforms-price-target-raised-by--at-Roth-Capital-heres-why said] Meta's product roadmap and WhatsApp monetization traction in Q3 guide could be incremental positives. | |||
==== Meta stands to benefit from AI ==== | ==== Meta stands to benefit from AI but there's short-term drag on earnings ==== | ||
* Buy, $683->$812: UBS [https://www.investing.com/news/analyst-ratings/meta-stock-price-target-raised-to-812-from-683-at-ubs-on-ai-potential-93CH-4112363 pointed] out (June 26) that potential revenue from AI initiatives such as Business Messaging and Meta AI are not yet reflected in analysts estimates. They added that a potential slowdown in AI monetization will not materially impact Meta since it primarily uses its own technology. | * Buy, $683->$812: UBS [https://www.investing.com/news/analyst-ratings/meta-stock-price-target-raised-to-812-from-683-at-ubs-on-ai-potential-93CH-4112363 pointed] out (June 26) that potential revenue from AI initiatives such as Business Messaging and Meta AI are not yet reflected in analysts estimates. They added that a potential slowdown in AI monetization will not materially impact Meta since it primarily uses its own technology. | ||
* Needham [https://thefly.com/permalinks/entry.php/id4153762/5629276161/META-Meta-Platforms-just-upgraded-at-Needham-heres-why believes] Meta's AI strategy "wastes capital and adds risks" and believes its margins and free cash flow are under structural downward trend. | |||
* Oppenheimer [https://www.investing.com/news/analyst-ratings/meta-stock-price-target-raised-to-775-from-665-at-oppenheimer-93CH-4097132 projects] Meta's CapEx to come in at $68 billion and $85 billion in 2025 and 2026, respectively. | |||
== Advertising spend and pricing insights == | == Advertising spend and pricing insights == | ||