On Wednesday, July 31, Meta Platforms (NASDAQ) released its Q2 2024 earnings report, exceeding analyst and investor expectations. The company reported earnings per share of $5.16, with revenue reaching $39.07 billion. These results significantly surpassed Wall Street forecasts of $4.70 per share and $38.26 billion in revenue.

This quarter, Meta demonstrated impressive growth in daily active users (DAUs), reaching 3.27 billion, a 7% increase compared to the same period last year. This reflects continued rising user engagement across the company's platforms, including Facebook, Instagram, and WhatsApp.

The company’s capital expenditures increased to $8.47 billion, up 7% from the first quarter. However, the high revenue growth allowed for a 9 percentage point increase in the operating margin, reaching 38%. Meta continues to invest actively in artificial intelligence and infrastructure, with projected capital expenditures ranging from $37 billion to $40 billion for 2024. These expenditures are expected to total between $96 billion and $99 billion for the entire year.

The company has provided an optimistic forecast for Q3 2024, expecting revenue in the range of $38.5 billion to $41 billion, with an average forecast of $39.75 billion. This exceeds analysts' consensus estimates of $39.09 billion in revenue.

Wall Street analysts are noting positive trends in the company's development and are raising their target prices for Meta's shares. Citi increased its target price from $550 to $580, highlighting growth in engagement and monetization, as well as an improved operating margin. JPMorgan, on the other hand, set a target price of $610 for December 2025, noting that investments in generative artificial intelligence (GenAI) will be substantial but promise long-term benefits.

One of the key themes of the report was the use of artificial intelligence. Meta is actively developing its AI technologies, integrating them into various aspects of its operations. New AI-driven content recommendation models, such as Meta AI and AI Studio, are already contributing to increased app usage and enhanced user experience. Analysts from Evercore ISI emphasize that Meta is effectively leveraging AI to improve both user offerings and advertising tools, creating additional growth opportunities.