Meta Stock Soars On Bumper Earnings Report

EPS & Revenues Beat TargetsShares in Meta are trading over 6% higher ahead of the open today following the release of Q2 earnings after market close yesterday. The group posted a beat on both earnings and revenues with an EPS of $2.98 vs $2.90 forecast on revenues of $31.999 billion vs $31.078 billion forecast, an 11% rise annually. Both earnings and revenues marked an increase on the prior quarter, helping lift investor sentiment.AI Revenues IncreasingHowever, it was the breakdown of the earnings release which really helped drive demand for the stock. Meta’s advertising income was seen soaring over the quarter, driven by the monetization of Instagram and Reels. Additionally, AI driven targeted ads were also seen boosting income. Zuckerberg noted that AI has become a key focus point for the company, overtaking Metaverse in the short term.Users Rising – Q3 Forecast RaisedAcross its family of apps, including Instagram, Meta reported a 7% rise in daily users over the quarter. Looking ahead, Zuckerberg also noted his excitement around Threads which has seen an explosion in initial users over the 100 million mark. Finally, Q3 revenues are forecast at $32. $34.5 billion, above the $31 billion Wall Street was looking for.Technical ViewsMetaThe rally in Meta shares has seen the stock breaking back above the 298.96 level and the bull channel highs. With price holding a retest of that zone and turning higher, the focus remains on further upside with 352.30 the next target for bulls.