Why Meta Platforms Shares Are Ripping Higher Today

Meta Platforms Inc FB shares are trading higher Thursday after the company reported better-than-expected earnings results.

Meta said first-quarter revenue increased 7% year-over-year to $27.91 billion, which came in below the $28.21 billion estimate. The company reported quarterly earnings of $2.72 per share, which beat the estimate of $2.56 per share, according to data from Benzinga Pro.

Monthly active users totaled 2.94 billion as of March 31, representing an increase of 3% year-over-year. Daily active users reached 1.96 billion, an increase of 4% year-over-year.

Related Link: Meta Platforms Q1 Earnings Highlights: EPS Beat, Revenue Miss, User Metrics Up And More

Meta said it expects second-quarter revenue to be between $28 billion and $30 billion versus the $30.6 billion estimate. On the company's earnings call, CEO Mark Zuckerberg said he expects Meta to have meaningful metaverse revenue in 2030. 

Analyst Assessment:

• Piper Sandler analyst Thomas Champion maintained Meta with a Neutral rating and lowered the price target from $240 to $230.
• Morgan Stanley analyst Brian Nowak maintained Meta with an Overweight rating and raised the price target from $325 to $330.
• Raymond James analyst Aaron Kessler maintained Meta with an Outperform rating and lowered the price target from $340 to $290.
• BMO Capital analyst Daniel Salmon maintained Meta with a Market Perform rating and lowered the price target from $225 to $222.
• Truist Securities analyst Youssef Squali maintained Meta with a Buy rating and lowered the price target from $350 to $320.

See Also: Facebook Parent's Metaverse Division Loses Nearly $3B In Q1, But Mark Zuckerberg Wants To See It Through

FB 52-Week Range: $169 - $384.33

The stock was up 16.1% at $203.04 at time of publication.

Photo: ProdeepAhmeed from Pixabay.