Meta Shares Rise 0.5% to $598 Ahead of Earnings Test on Ads and AI Spending
Updated
Updated · Benzinga · Jul 27
Meta Shares Rise 0.5% to $598 Ahead of Earnings Test on Ads and AI Spending
3 articles · Updated · Benzinga · Jul 27
Summary
$598.21 marked Meta’s share price Monday afternoon, up 0.51% ahead of Wednesday results that investors see as a test of whether ad growth can keep supporting heavy AI investment.
July 29 earnings face a higher bar because another modest beat may not satisfy investors if management signals AI and data-center spending will rise faster than profit and cash generation.
Four straight quarterly beats have raised expectations: Meta’s average EPS surprise is 12.1%, including April results of $7.31 a share on $56.31 billion in revenue, both above estimates.
21.6 times earnings is not seen as stretched by some analysts, but that valuation could compress if Meta points to a longer payoff period for AI infrastructure; the average price target is $820.81.