As Meta Platforms prepares to release its first-quarter earnings this Wednesday, Wall Street remains optimistic about the tech giant’s performance, driven by strong advertising and an emerging focus on artificial intelligence. Here’s what top analysts anticipate:

Wells Fargo Sees Continued Growth, Eyes WhatsApp Monetization

Wells Fargo highlights Meta’s robust e-commerce-driven ad strength, propelling an upgraded revenue forecast for the first quarter. However, the bank signals a potential moderation in the second quarter, pinpointing a need for new product catalysts to sustain momentum. With a keen eye on WhatsApp’s untapped revenue potential, Wells Fargo maintains an “Overweight” rating with a $600 target, emphasizing Meta’s sustainable growth trajectory.

RBC Cites Meta’s Superior Ad Volume Growth

RBC notes Meta’s competitive edge, particularly through Instagram Reels, which has seen a substantial increase in ad integration. Despite global economic shifts that might temper ad spending, RBC is confident in Meta’s ability to deliver mid-teen growth, provided Q2 earnings align with expectations. With a price target of $600, RBC rates Meta as “Outperform,” highlighting its long-term earnings potential and AI capabilities.

Goldman Sachs: Bullish on Digital Advertising’s Future

Goldman Sachs projects continued strength in digital advertising, boosting Meta’s prospects. The firm applauds Instagram Reels’ move towards revenue neutrality, expecting it to drive future revenue growth. Although immediate catalysts may be limited in this earnings report, Goldman remains optimistic about Meta’s long-term prospects with a “Buy” rating and a $555 price target.

Bank of America: Anticipating Product Innovations and Revenue Upswings

Expecting a first-quarter beat driven by heightened ad spend, Bank of America is optimistic about Meta’s early-stage AI monetization. The analysts believe Meta’s AI assets are not fully appreciated in its current market valuation. They foresee potential product surprises and increased revenue momentum throughout 2024, especially as regulatory challenges to competitors like TikTok could redirect market share to Meta. The firm maintains a “Buy” rating with a $550 target.

JPMorgan Cautions on Growth Deceleration Post-Q1

While JPMorgan recognizes Meta as a top investment, it warns of potential growth deceleration after a strong first quarter due to tougher comparisons and static growth drivers compared to 2023. Acknowledging Meta’s leadership in integrating AI into its advertising strategies, JPMorgan anticipates a gradual slowdown to mid-teens growth by year-end. They maintain an “Overweight” rating with a $535 price target.

As Meta Platforms gears up to unveil its latest quarterly achievements, the consensus among analysts suggests a strong showing, underscored by effective advertising strategies and pioneering AI integrations. Investors will be keenly watching for new developments that could define the company’s trajectory in the competitive tech landscape.