Why Facebook Parent Meta's Shares Are Ripping Higher Premarket

Shares of social media giant Meta Platforms, Inc. META were surging higher in premarket trading on Thursday.

The strong upward momentum has come on the back of the company’s second-quarter results that exceeded expectations. The company’s revenue rose 11% to $32 billion, exceeding the $28.13 billion consensus estimate. This marked the first double-digit revenue growth since the fourth quarter of 2021.

The earnings per share of $2.98 also came in above the $2.63 Street estimate. All user metrics improved year-over-year.

The company guided to third-quarter revenue of $32 billion – $34.5 billion, notably higher than the consensus estimate of $28.29 billion.

Deepwater Asset Management’s Gene Munster said the year of cost-cutting is over, and Meta is now focused on efficiency growth. 

He noted that the company will unveil new artificial intelligence products, such as creative tools for Instagram and the metaverse, at their Connect conference on Sept. 27. 

See Also: How To Meta (Formerly Facebook) Stock

Following the earnings print, a slew of analysts have raised the price target for the stock.

• Baird upped the price target from $330 to $355.
• Bernstein upwardly adjusted the price target from $350 to $375.
• Canaccord Genuity increased the price target from $360 to $375.
• Jefferies upped the price target from $360 to $400.
• Oppenheimer’s price target went up from $350 to $380.
• Piper Sandler increased the price target from $310 to $365.
• RBC Capital Markets upped the price target from $330 to $400.
• TD Cowen’s price target was nudged up from $345 to $365.

In premarket trading on Thursday, Meta shares rallied 8.92% to $26.62, according to Benzinga Pro data.

Read Next: Trading Strategies for Meta Platforms Stock Before And After Q2 Earnings

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