Reddit Reports Strong Earnings, Stock Volatility Observed
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Should l Buy META?
Source: CNBC
- Strong Earnings Report: Reddit reported fourth-quarter revenue of $726 million, exceeding the market consensus of $665 million, indicating robust performance in its advertising business, which is expected to further drive stock recovery.
- Earnings Beat: The company achieved earnings per share of $1.24, significantly surpassing the analyst estimate of $0.94, demonstrating a notable improvement in profitability that may attract more investor interest.
- Stock Buyback Program: Reddit announced a $1 billion stock repurchase program with no set expiration date, aimed at enhancing shareholder value and boosting market confidence in the company's future prospects.
- Market Volatility Reaction: Despite an initial 9% surge in stock price on Friday morning, shares reversed course to decline nearly 5%, reflecting market caution towards high-volatility stocks, which could influence short-term investor decisions.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for META is 824.71 USD with a low forecast of 655.15 USD and a high forecast of 1117 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 670.210
Low
655.15
Averages
824.71
High
1117
Current: 670.210
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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