Meta Platforms will release its Q2 financial results next Wednesday (31st). According to a report from Bank of America, it is expected that Meta's Q2 revenue will exceed or meet the expected $38.5 billion, with ad revenue increasing by 20% YoY, EBITDA estimated at $23 billion, earnings per share of $4.98, both of which exceed market expectations, and healthy growth in the use time and user growth of IG. Q3 revenue guidance is estimated to be between $37.5 billion and $40.5 billion. Bank of America remains positive on Meta, believing that the progress of Reels, Messaging, and AI advertising is still in the initial stage and may drive future revenue growth. In addition, there are reports that the company may cut spending on the metaverse division Reality Labs, which could lead to more focus on core business valuation. With political propaganda spending and possible restrictions on TikTok in the second half of the year, Meta's ad revenue may benefit.

The bank maintains a "buy" rating on Meta with a target price of $550, reflecting a forecasted PE ratio of 22 times next year.