Meta releases its first quarter results on Tuesday.
The company recently released its latest AI chatbot, Llama 3.
Meta stock is up about 40% in 2024.
Meta will report its first quarter results on Wednesday after the closing bell.
The company has had a strong start to 2024, riding the wave of interest in artificial intelligence. JPMorgan says that while AI dominates investor discussions, the buzz is shifting toward recognizing Meta’s early wins in coding efficiency and cost reduction.
Meta’s actions was up 40% year to date through Tuesday’s close, well outpacing the S&P500That’s a gain of 6%.
Bank of America considers Meta’s AI assets to be undervalued.
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Bank of America expects an uptick in Meta’s first-quarter report, citing higher ad spending that was boosted by seasonal events, such as Easter.
Meanwhile, Meta’s AI assets remain undervalued, and the company will benefit by showcasing its growing capabilities in the area, the bank said in a note last week.
“We remain positive on Meta and reiterate our thesis that reels, messaging and AI-based ad improvements are still early days and could lead to positive product surprises and revenue momentum in 2024,” said analysts Justin Post and Nitin Bansal.
Meta also appears to be the biggest winner from a possible TikTok ban, which has now emerged. path through the Senate.
Bank of America rates Meta at “Buy” with a price target of $550.
Meta’s consensus revenue estimate for the first quarter is $36.12 billion.
