"Meta's strong engagement and revenue execution (and operating-expense discipline) and Generative AI leadership has given the market more confidence in multi-year growth durability," analysts with Morgan Stanley wrote in a client note.
"Most experts were generally positive for Meta, noting continued momentum as clients continue to use this as the primary channel for good ROAs," Jefferies analyst Brent Thill wrote in a recent note, referring to return-on-advertising spending.
Analysts polled by FactSet see Meta posting a 19% increase in earnings, to $5.21 per share, with sales rising 17.7% to $40.2 billion, marking a deceleration from previous quarters.
While it has made bets on developing AI models and augmented-reality glasses, Meta still derives almost all its revenue from selling advertising on its 'Family of Apps,' including Facebook and Instagram.
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