Meta’s holiday-quarter forecast beats expectations as AI tools drive growth
Meta Platforms, parent company of Facebook, has forecast holiday-quarter revenue that surpasses market expectations, anticipating a surge in ad spending as the year ends.
The projection comes as Meta’s AI-driven advertising tools and short-form video feature Reels have spurred revenue growth this year.
Meta’s shares dipped 2.5% in after-hours trading, despite a third-quarter profit of $6.03 per share—well above analysts’ forecast of $5.25.
Analysts expect digital ads to have a “blockbuster” year in 2024, helped by improved economic forecasts and steady consumer spending.
Meta, heavily reliant on advertising revenue, stands to benefit from increased holiday marketing as it eyes revenues of $45 to $48 billion this quarter.
The company’s third-quarter revenue reached $40.59 billion, narrowly topping analysts’ estimates.
With interest rates easing, analysts suggest Meta’s ad revenue could continue to thrive into the new year.
As holiday spending ramps up, Meta’s AI investments are paying off.
