Meta and Microsoft Earnings Preview: What to Expect in Q3 2024
Introduction
Meta Platforms (META) and Microsoft Corporation (MSFT) are set to report their financial results for the third quarter of 2024. These two tech giants are closely watched by investors and analysts alike, as their performance can provide insights into the overall health of the technology sector. In this preview, we will delve into what to expect from Meta and Microsoft's upcoming earnings reports, based on recent news, analyst estimates, and industry trends.
Meta Platforms: Facing Challenges, Seeking Growth
Meta Platforms, the parent company of Facebook, Instagram, and WhatsApp, has been facing a number of challenges in recent months. These include declining user engagement on Facebook, increased competition from TikTok, and regulatory scrutiny over data privacy concerns. However, the company has also taken steps to address these challenges, such as investing in new products and features, and expanding its advertising business.
Analysts are expecting Meta to report revenue of $31.54 billion for the third quarter of 2024, a 6.7% increase from the same period last year. Earnings per share are projected to be $2.72, down from $3.22 in Q3 2023. These estimates reflect the challenges that Meta is facing, but also indicate that the company is expected to continue growing.
Investors will be looking for signs of improvement in Meta's core advertising business, as well as updates on the company's progress in developing new products and services. The company's metaverse ambitions will also be a key focus, as Meta has invested heavily in this area and is betting on it as a future growth driver.
Microsoft Corporation: Cloud Growth, AI Investments
Microsoft Corporation, the software and cloud computing giant, has been performing well in recent quarters, driven by strong growth in its cloud computing business. The company's Azure cloud platform has been gaining market share against Amazon Web Services (AWS), and Microsoft has also been investing heavily in artificial intelligence (AI). Microsoft CEO Satya Nadella recently confirmed that the company will be revealing new developments and updates on its AI investments during this quarter's earnings call.
Analysts are expecting Microsoft to report revenue of $52.94 billion for the third quarter of 2024, a 10.6% increase from the same period last year. Earnings per share are projected to be $2.32, up from $2.22 in Q3 2023. These estimates reflect Microsoft's continued growth in the cloud and AI markets.
Investors will be looking for updates on Microsoft's cloud computing business, including its progress in winning new customers and expanding its market share. The company's AI investments will also be a key focus, as investors will be keen to hear about Microsoft's plans for integrating AI into its products and services. The company may also provide an update on its progress in the gaming market, where it is competing with Sony and Nintendo.
Conclusion
Meta Platforms and Microsoft Corporation are two of the most important companies in the technology sector. Their upcoming earnings reports will provide insights into the overall health of the industry and will be closely watched by investors and analysts alike. While both companies are facing challenges, they are also well-positioned for growth in the long term. Meta is betting on the metaverse and new products to drive future growth, while Microsoft is investing heavily in cloud computing and AI. Investors will be looking for signs of progress in these areas when the companies report their earnings in late October 2024.
