Meta Platforms, Inc. (META – Get Rating) delivered a stellar performance in the third quarter, exceeding expectations with a revenue surge of 23%, marking the most rapid growth pace since 2021. Reporting revenues of $34.15 billion, the company notably surpassed the consensus estimate of $33.56 billion. EPS, too, exceeded expectations, as it settled at $4.39, outpacing the anticipated $3.63.
The credit for Meta’s climbing success rests largely on the resurgence of its core digital advertising business, which took a hit in 2022 but is steadily regaining vigor. The firm has also realized substantial advancements in enhancing the efficiency of its online ads.
A noteworthy part of Meta’s strategy involves leveraging the potential of artificial intelligence (AI). The company has invested heavily in this technology, which has helped it land retailers looking to serve customers targeted promotions. AI is expected to constitute Meta’s largest investment area in 2024.
Nonetheless, share prices of the internet behemoth experienced a dip following an announcement from executive leadership. Company executives have suggested that fourth-quarter performance may be susceptible to macroeconomic and geopolitical instability as well as potential regulatory interventions.
Despite a potentially rocky near-term outlook, Meta’s promising long-term growth prospect positions it as a solid investment opportunity. To gain a more thorough understanding of its potential, a deep dive into key performance indicators is necessary…
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