Citi Analyst Predicts 15% Upside on Reels Ad Performance

  • Citi analyst Ronald Josey raises estimates for Meta Platforms’ third-quarter earnings
  • Ad loads on Reels have reached 22.2% in Q3, up from the previous quarter
  • More than 75% of Meta’s advertisers use Reels
  • Citi predicts $5.48 EPS and $40.7B in sales for Q3
  • Josey expects a 15% gain in Meta stock price from current levels

Citi analyst Ronald Josey is more optimistic about Meta Platforms’ earnings than the rest of Wall Street due to the success of its short-video service, Reels. He predicts $5.48 EPS and $40.7B in sales for Q3, with a 15% stock price increase expected. Ad loads on Reels have reached 22.2%, up from the previous quarter, and over 75% of Meta’s advertisers use the platform. Citi’s methodology may be questioned due to its small sample size, but Josey believes it provides insight into Reels’ performance.

Factuality Level: 7
Factuality Justification: The article provides accurate information about Citi’s bullish outlook on Meta Platforms based on internal data for Reels and the analyst’s predictions for earnings and sales. However, there is a brief mention of potential limitations in Citi’s methodology for tracking ad loads, which could be seen as a minor concern.
Noise Level: 3
Noise Justification: The article provides relevant information about Citi’s bullish outlook on Meta Platforms based on internal data regarding Reels ads performance. However, it also mentions some concerns about the methodology used by Citi in its analysis, which could be seen as a minor noise factor.
Public Companies: Meta Platforms (META), Citi (C)
Key People: Ronald Josey (Analyst)

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Financial Relevance: Yes
Financial Markets Impacted: Meta Platforms (META) stock
Financial Rating Justification: The article discusses Meta Platforms’ expected earnings and ad load on Reels, which can impact the company’s financial performance and potentially affect its stock price.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article and it does not discuss any major events that happened in the last 48 hours.
Move Size: The market move size mentioned in the article is 15%.
Sector: Technology
Direction: Up
Magnitude: Medium
Affected Instruments: Stocks

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