Meta Platforms (META) reported second quarters earnings late Wednesday that easily exceeded analyst expectations. Meta stock rallied in after-hours trading.
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Here’s How Meta’s AI Tools Are Set To Supercharge Revenue In Year Of Efficiency
Revenue for the Facebook and Instagram parent company in the June ended quarter advanced 22% year-over-year to $39.07 billion. Analysts were expecting $38.26 billion in sales for the Menlo Park, Calif.-based company, according to FactSet.
Earnings were $5.16 per share, up 73% from a year earlier. Analysts were expecting $4.72 per share, according to FactSet.
Meanwhile, Meta projects that it will record between $38.5 billion and $41 billion in revenue for the third quarter. Prior to Meta reporting results, analysts were forecasting $39.1 billion in sales for the September-ending quarter.
Meanwhile, Meta said to expect between $37 billion and $40 billion in capital expenditures this year. That is up from its previous range of $35 billion to $40 billion.
In after-hours trading, Meta stock is up more than 3%.
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Meta Stock: Down 6% In July
On the stock market today, Meta stock is ahead 2.2% in recent action at 473.41.
But it has generally been a rough month of July for Meta stock. Shares have fallen roughly 6% since June 30 and are down more than 12% from a record high of 542.81 reached on July 5.
Meta’s recent slide has come as the broader group of Magnificent Seven stocks have struggled. Investors have rotated from outperforming big tech stocks and into other markets following a cool inflation print that raised hopes for a rate cut in September.
Meta stock also fell after Google reported lower than expected ad revenue for its YouTube division last week.
Meta stock remains more than 3% below its 50-day moving average. Shares fell below the 50-day line in heavy volume earlier this month.
Shares have also plunged well below a 514.01 cup-with-handle buy point that marked a potential break out on June 27. Meanwhile, Meta stock’s Relative Strength line has fallen from a 95 (out of 99) earlier this month to 86.
Meanwhile, the IBD Stock Checkup tool shows Meta stock holds an IBD Composite Rating of 85 from a best-possible 99. The score means Meta stock is currently in the top 15% of stocks in terms of key performance metrics and technical strength. But the top growth stocks typically hold scores above 90.
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