Why this analyst is 'not surprised' at Meta's post-earnings stock decline
Meta Platforms (META) delivered strong third quarter results. The tech giant posted adjusted earnings of $6.03 per share, above the $5.25 Wall Street expected, and revenue of $40.59 billion, exceeding the projected $40.25 billion. Despite the quarterly beat, the stock experienced a post-earnings decline. Seaport Research Partners senior analyst Aaron Kessler joined Market Domination Overtime to explain this diverging market reaction. According to Kessler, market expectations for Meta were "relatively high" leading up to the earnings report. While the company beat street expectations, he notes that given the stock's strong performance before the announcement, he's "not surprised to see it down a little bit." Addressing Meta's AI strategy, Kessler identifies two key approaches: internal applications for automating advertising systems and operations and long-term initiatives to develop generative AI products and services. However, he characterizes the company's generative AI efforts as still being in their "fairly early" stages. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. This post was written by Angel Smith
