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Meta's AI Ambitions and Capex Plans in Focus as Earnings Loom
30 Jul
Summary
- Analysts eyeing strong AI opportunities and growth in ad spend for Meta
- Concerns around high levels of capex and Meta's recent hiring spree
- Meta stock up 20% year-to-date, among top performers in Magnificent Seven
As Meta Platforms prepares to release its second-quarter earnings report after the market closes on Wednesday, analysts are closely watching for updates on the company's capital expenditure (capex) plans and its progress in artificial intelligence (AI).
Wall Street has been mostly bullish heading into the results, with analysts eyeing strong AI opportunities and continued growth in ad spend. However, there are also some growing concerns around the high levels of capex at Meta and the company's recent hiring spree aimed at furthering its AI ambitions.
Analysts expect Meta, the parent company of Facebook, to report $44.83 billion in revenue and earnings per share of $5.89 for the quarter. The earnings call with analysts is scheduled to start at 5 p.m. ET, shortly after the 4 p.m. ET market close.
Meta's stock has been a standout performer so far this year, rising by around 20% through Tuesday's close. This puts the company among the top performers in the Magnificent Seven cohort, a group of tech giants that also includes the likes of Apple, Amazon, and Alphabet.
