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A major test of the market’s AI trade is here in the form of Big Tech earnings, and Meta is due up next.
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Along with Microsoft, the social media giant will deliver second-quarter earnings after the closing bell on Wednesday. Meta is one of the “hyperscalers” spending huge sums on its AI projects, from data centers to its own large language models, and investors are getting impatient to see what those efforts have yielded.
All eyes will be on Meta’s capex number, the all important figure that’s come to dominate investors’ reactions to earnings lately. Alphabet and Tesla set the tone last week with their heightened spending outlooks, causing both stocks to tumble after results.
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Meta will report after the 4 p.m. ET closing bell, and the call with analysts will kick off around 4:30 p.m. The stock is down 10% year to date.
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Max Adams
Wall Street expects Q2 revenue of $60.23 billion, EPS of $7.14
Second quarter
- Revenue estimate $60.23 billion (Bloomberg Consensus)
- Advertising rev. estimate $59.07 billion
- Family of Apps revenue estimate $59.77 billion
- Reality Labs revenue estimate $428.7 million
- Other revenue estimate $863.3 million
- Operating income estimate $21.5 billion
- Family of Apps operating income estimate $26.11 billion
- Reality Labs operating loss estimate $4.45 billion
- Operating margin estimate 35.6%
- EPS estimate $7.14
- Ad impressions estimate +14.6%
- Average price per ad estimate +11.7%
- Average Family service users per day estimate 3.61 billion
Third quarter
Second quarter
- Revenue estimate $60.23 billion (Bloomberg Consensus)
- Advertising rev. estimate $59.07 billion
- Family of Apps revenue estimate $59.77 billion
- Reality Labs revenue estimate $428.7 million
- Other revenue estimate $863.3 million
- Operating income estimate $21.5 billion
- Family of Apps operating income estimate $26.11 billion
- Reality Labs operating loss estimate $4.45 billion
- Operating margin estimate 35.6%
- EPS estimate $7.14
- Ad impressions estimate +14.6%
- Average price per ad estimate +11.7%
- Average Family service users per day estimate 3.61 billion
Third quarter
- Revenue estimate $63.17 billion
- Capital expenditure estimate $38.88 billion
Year
- Capital expenditure estimate $135.79 billion
- Total expenses estimate $163.02 billion
Source: Bloomberg
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