Meta Platforms (NASDAQ:META) will announce its fourth-quarter financial results after the market closes on February 1. Meanwhile, the ongoing pressure on ad revenues, increased competition, and adverse currency headwinds indicate that META’s prospects aren’t likely to change much in Q4. The company could witness a continued decline in sales and earnings.
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Meta’s revenues have declined in the past two quarters. Meanwhile, its EPS registered a decline in the last four consecutive quarters.
As for Q4, analysts expect Meta Platforms to post earnings of $2.26 per share, implying a year-over-year decline of about 38%.
Monness analyst Brian White said that with ad revenues still under pressure, Meta’s Q4 top line could continue to decline. The analyst expects the current macro and geopolitical environment to weigh on ad spending in the coming quarters, negatively impacting Meta’s financial performance.
However, White maintains a bullish outlook on Meta stock and expects the company to benefit from secular digital ad trends in the long term.
Is Meta a Buy, Sell, or Hold?
Meta continues to face revenue and margin headwinds in the short term. Meanwhile, legal and regulatory risks could remain a drag. Despite short-term headwinds, Wall Street is bullish about Meta stock. It has received 20 Buy, four Hold, and one Sell recommendations for a Strong Buy consensus rating.
Furthermore, analysts’ average price target of $155.79 implies an insignificant 2.67% upside potential.
