TECH - Meta Platforms Hits 52-Week High: What's Next for META Investors? | Benzinga
Meta Platforms (NASDAQ: META) shares hit a 52-week high of $542.81 on Jul 8 and finally closed at $529.32, up 49.5% year to date. Its shares have outperformed the Zacks Internet Software industry's gain of 19% and the Zacks Computer & Technology sector's return of 29.2% over the same time frame.
META is riding on strong advertising revenue growth prospects. In the first quarter of 2024, advertising revenues increased 26.8% year over year to $35.64 billion and accounted for 97.8% of revenues. At constant currency, advertising revenues increased 26% year over year.
Meta Platforms' offerings — WhatsApp, Instagram, Messenger, and Facebook — currently reach more than three billion people daily. Its staggering reach and increasing ad impressions (up 20% year over year in first-quarter 2024) make META one of the most important players in the digital ad sales market apart from Google and YouTube parent Alphabet (NASDAQ: GOOGL).
Meta Platforms' advertising revenues are expected to benefit from strong spending by advertisers as they leverage META's growing AI prowess.
META YTD Performance
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for second-quarter 2024 advertising revenues is currently pegged at $37.39 billion, suggesting 33.1% year-over-year growth. The consensus mark for 2024 advertising revenues is currently pegged at $155.08 billion, indicating 17.5% growth over 2023.