Meta Platforms (META) To Report Double-Digit Growth, According To Mizuho Analysts
According to Mizuho analysts, the revenue growth of Meta Platforms during the 2nd half will be in the double digits. They attribute an uptick in Facebook's digital ads to the improvement in revenue growth.
They added that the advertising market share of Facebook will increase further as TikTok is facing scrutiny from the US authorities. In fact, the US government has even tasked an agency to look at TikTok's transactions with implications for national security.
1% Revenue Growth In 3rd Quarter
For the 3rd quarter, Meta Platforms is expected to post a 1% growth in its revenue when compared with the 2nd quarter. According to the analysts at Mizuho, this projection is very reasonable, given the market fundamentals.
Looking ahead, they added that operating metrics such as ad volume will also improve. In fact, metrics like these are already improving amid an increase in user engagement.
Meanwhile, the price target for the Meta Platform shares has also been revised higher to $350. Earlier, the analysts had set a price target of $280. If we look at these two numbers, that's an increase of almost $70, which is a big amount given the current share price of Meta Platforms.
Meta Platforms is expected to announce its 2nd quarter results within the next few days. If the forecast of Mizuho turns out to be true, it would definitely give a boost to the company's share price. However, lower-than-expected results for the quarter will likely make investors question their investment in the social media company.
For the most part, the analysis made by Mizuho appears to have a lot of substance. After all, companies like TikTok are facing increased scrutiny int he USA, which means more business for the US firms such as Facebook, Google, & others.
Over all, the stakes are really high and the recent results will also tell us about the health of the Meta Platforms owned social sites such as Facebook & others.