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From Meta & Snap to TikTok & Pinterest: Where Ad Dollars Are Going
Major firm rating | Citigroup: Raises Meta's Target Price to $690, with key AI focus areas driving sustainable growth in the future.
Citi published a Research Report indicating that Meta's Q1 Earnings Report for FY 2025 exceeded expectations, with advertising revenue growing 20% year-on-year after excluding the impact of Exchange Rates. The upper limit of the company's Q2 guidance surpasses market expectations. The key point is that Meta's advertising demand trend is relatively healthy, although the bank is concerned about the impact of the macro economy and reduced spending by Chinese advertisers. However, the scale of Meta's users and advertisers, along with the focus on new products, is mitigating some of the macro challenges. Citi stated that Meta's AI has reached about 1 billion monthly active users, and Threads has achieved 0.35 billion monthly active users, along with engagement levels in core applications.
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