Meta Platforms Needs Fresh Impetus to Extend Rally

After climbing by more than +77% this year, Meta Platforms (META) may need a new catalyst to extend the rally.  Meta Platforms posted an 11-month high earlier this month after implementing plans to cut costs and make the company more efficient.  However, with the bulk of the cost-saving plans already in place, the company may need to see a pickup in ad spending to sustain this year’s rally. 

Meta Platforms will report Q1 earnings results Wednesday, and the consensus is for Q1 revenue to fall -0.9%.  Analysts are expecting a slow recovery in future sales growth, with single-digit growth anticipated through year-end, well below the company’s average annual growth of 42% over the decade since 2012.  CFRA Research said it isn’t expecting a recovery in digital ads this year while noting that most of Meta Platform’s cost reductions “have largely been accounted for.”