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Meta Platforms (META) Expands Features of Instagram Reels
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Meta Platforms (META - Free Report) is expanding the features of Instagram Reels with the addition of a dedicated destination tool. It is also adding total and average watch times, two new metrics to Reels insights.
The dedicated destination feature will help creators discover fresh content ideas through trending audio and hashtags. Meta is also introducing a feature to edit reels on Instagram through video clips, audio, stickers, and text on a unified editing screen. This is available globally, across both iOS and Android devices.
The latest two metrics — total and average watch times — will help creators by providing insights about engagement levels. Total watch time captures the total amount of time a reel played, including any time spent replaying the reel. Average watch time captures the average amount of time spent playing a reel, calculated by dividing watch time by the number of total plays.
Moreover, Meta is now bringing gifts on reels in new countries including Australia, Canada, France, Mexico, New Zealand, and the U.K. in the coming weeks. It is also adding a feature that will allow creators to recognize their supporters.
The latest features are expected to help the company attract new subscribers to Instagram Reels and enhance the rate of monetization. Meta expects Reels to monetize much slower than feed or stories, which has been a concern.
Meta Prospects Bright in 2023
Meta has been benefiting from increased engagement for its products like Instagram, WhatsApp, Messenger and Facebook.
However, challenging macroeconomic conditions are negatively impacting its advertising revenues. Unfavorable forex, targeting and measurement headwinds due to Apple’s iOS changes, normalization of e-commerce after the pandemic peak and higher inflation have hurt growth.
The company’s Metaverse ambitions have also suffered in recent times due to decreasing user interest and challenging macroeconomic conditions.
Meta’s first-quarter 2023 guidance reflects macroeconomic and forex concerns. Weak advertising demand has been a headwind.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $27.48 billion, indicating a decline of 1.51% from the year-ago quarter’s reported figure. The consensus mark for earnings has dropped 0.5% to $1.97 per share in the past 30 days.
However, Meta shares have been on a roll year to date. Shares have gained 84.1% compared with the Zacks Computer and Technology sector, which increased 19.8% year to date.
The outperformance is largely due to its initiatives to increase efficiency through restructuring of the organization by making layoffs and cutting non-performing projects. This exhibits a shift in focus on growing its core businesses and realigning strategic priorities.
Meta’s long-term growth prospects are likely to improve as it revamps its focus on its core business of fastest-growing messaging offerings, including the monetization opportunity for WhatsApp and Instagram.
Other Stocks to Consider
Cadence Design Systems (CDNS - Free Report) , Lattice Semiconductor (LSCC - Free Report) , and WESCO International (WCC - Free Report) have the same rank as Meta in the broader sector.
Cadence is set to report first-quarter 2023 results on Apr 24.
The Zacks Consensus Estimate for Cadence’s first-quarter 2023 earnings is pegged at $1.25 per share, unchanged over the past 30 days. The consensus mark for revenues stands at $1.01 billion, indicating year-over-year growth of 11.52%.
Lattice is set to report first-quarter 2023 results on May 1.
The Zacks Consensus Estimate for LSCC’s first-quarter 2023 earnings is pegged at 50 cents per share, unchanged over the past 30 days. The consensus mark for revenues stands at $179.9 million, indicating year-over-year growth of 19.54%.
WESCO is set to report first-quarter 2023 results on May 4.
The Zacks Consensus Estimate for WESCO’s first-quarter 2023 earnings is pegged at $3.57 per share, up by a penny over the past 30 days. The consensus mark for revenues stands at $5.40 billion, indicating year-over-year growth of 9.55%.
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Meta Platforms (META) Expands Features of Instagram Reels
Meta Platforms (META - Free Report) is expanding the features of Instagram Reels with the addition of a dedicated destination tool. It is also adding total and average watch times, two new metrics to Reels insights.
The dedicated destination feature will help creators discover fresh content ideas through trending audio and hashtags. Meta is also introducing a feature to edit reels on Instagram through video clips, audio, stickers, and text on a unified editing screen. This is available globally, across both iOS and Android devices.
The latest two metrics — total and average watch times — will help creators by providing insights about engagement levels. Total watch time captures the total amount of time a reel played, including any time spent replaying the reel. Average watch time captures the average amount of time spent playing a reel, calculated by dividing watch time by the number of total plays.
Moreover, Meta is now bringing gifts on reels in new countries including Australia, Canada, France, Mexico, New Zealand, and the U.K. in the coming weeks. It is also adding a feature that will allow creators to recognize their supporters.
Meta Platforms, Inc. Price and Consensus
Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote
The latest features are expected to help the company attract new subscribers to Instagram Reels and enhance the rate of monetization. Meta expects Reels to monetize much slower than feed or stories, which has been a concern.
Meta Prospects Bright in 2023
Meta has been benefiting from increased engagement for its products like Instagram, WhatsApp, Messenger and Facebook.
However, challenging macroeconomic conditions are negatively impacting its advertising revenues. Unfavorable forex, targeting and measurement headwinds due to Apple’s iOS changes, normalization of e-commerce after the pandemic peak and higher inflation have hurt growth.
The company’s Metaverse ambitions have also suffered in recent times due to decreasing user interest and challenging macroeconomic conditions.
Meta’s first-quarter 2023 guidance reflects macroeconomic and forex concerns. Weak advertising demand has been a headwind.
This Zacks Rank #1 (Strong Buy) company’s first-quarter 2023 revenues are expected between $26 billion and $28.5 billion. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $27.48 billion, indicating a decline of 1.51% from the year-ago quarter’s reported figure. The consensus mark for earnings has dropped 0.5% to $1.97 per share in the past 30 days.
However, Meta shares have been on a roll year to date. Shares have gained 84.1% compared with the Zacks Computer and Technology sector, which increased 19.8% year to date.
The outperformance is largely due to its initiatives to increase efficiency through restructuring of the organization by making layoffs and cutting non-performing projects. This exhibits a shift in focus on growing its core businesses and realigning strategic priorities.
Meta’s long-term growth prospects are likely to improve as it revamps its focus on its core business of fastest-growing messaging offerings, including the monetization opportunity for WhatsApp and Instagram.
Other Stocks to Consider
Cadence Design Systems (CDNS - Free Report) , Lattice Semiconductor (LSCC - Free Report) , and WESCO International (WCC - Free Report) have the same rank as Meta in the broader sector.
Cadence is set to report first-quarter 2023 results on Apr 24.
The Zacks Consensus Estimate for Cadence’s first-quarter 2023 earnings is pegged at $1.25 per share, unchanged over the past 30 days. The consensus mark for revenues stands at $1.01 billion, indicating year-over-year growth of 11.52%.
Lattice is set to report first-quarter 2023 results on May 1.
The Zacks Consensus Estimate for LSCC’s first-quarter 2023 earnings is pegged at 50 cents per share, unchanged over the past 30 days. The consensus mark for revenues stands at $179.9 million, indicating year-over-year growth of 19.54%.
WESCO is set to report first-quarter 2023 results on May 4.
The Zacks Consensus Estimate for WESCO’s first-quarter 2023 earnings is pegged at $3.57 per share, up by a penny over the past 30 days. The consensus mark for revenues stands at $5.40 billion, indicating year-over-year growth of 9.55%.