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Shares of Meta Platforms have outperformed the Zacks Internet – Software industry over the past six months (+63.3% vs. +39.4%). The company is benefiting from steady user growth across all regions, particularly Asia Pacific. Increased engagement for its offerings like Instagram, WhatsApp, Messenger, and Facebook has been a major growth driver.
Meta Platforms’ is leveraging AI to recommend Reels content, which is driving traffic on Instagram and Facebook. Its innovative portfolio, which includes Threads, Reels, Llama 2, Ray-Ban Meta smart glass, and mixed reality device Quest 3 is likely to aid prospects. Reels continued to do very well across both Instagram and Facebook driven by growing adoption. People reshared Reels 3.5 billion times every day during the fourth-quarter.
However, challenging macroeconomic conditions remain a headwind for Meta’s advertising revenues. Slow monetization of Reels, along with mounting operating losses at Reality Labs, are concerns.
(You can read the full research report on Meta Platforms here >>>)
S&P Global’s shares have outperformed the Zacks Business – Information Services industry over the past year (+26.7% vs. +23.9%). The company remains well-poised to gain from the growing demand for business information services. Buyouts help innovate, increase differentiated content, and develop new products.
New service launches have been aiding the company’s growth. Dividend payments and share buybacks boost investors’ confidence and positively impact earnings per share.
However, S&P Global remains vulnerable to proceedings, investigations, and inquiries concerning the ratings provided, leading to legal charges, damages, or fines. Growth initiatives, higher compensations, and incentives raise the company’s expenses. Decreasing the current ratio does not bode well for the company.
(You can read the full research report on S&P Global here >>>)
Shares of AT&T have gained +18.5% over the past six months against the Zacks Wireless National industry’s gain of +19.9%. The company has offered a muted outlook for 2024 owing to a challenging macroeconomic environment. Dwindling contribution from DirecTV business is a concern.
AT&T is facing a steady decline in linear TV subscribers and legacy services. As it tries to woo customers with discounts, freebies, and cash credits, margin pressures tend to escalate. However, AT&T is witnessing healthy momentum in postpaid wireless business with a lower churn rate and increased adoption of higher-tier unlimited plans driven by a customer-centric business model.
The deployment of Open RAN architecture, which offers more flexibility, lowers costs, and helps to monetize the network, is likely to reap long-term benefits. An integrated fiber expansion strategy is expected to improve broadband connectivity, while steady 5G deployments are likely to boost end-user experience.
(You can read the full research report on AT&T here >>>)
Other noteworthy reports we are featuring today include RTX Corp. (RTX), CME Group Inc. (CME), and FedEx Corp. (FDX).More By This Author:Are Bulls Likely To Enter The China Shop? Mixed After-Market Results From Late Earnings: NKE, FDX, LULUFOMC, Powell Give Investors The Warm Fuzzies
