Meta Platforms revealed at its most recent Q2 2022 earnings call that "year-over-year ad revenue growth was strongest in Asia Pacific and Rest of World at 13% and 11%, respectively" in Q2, which was in contrast with negative advertising revenue growth for the company's European and North American markets in the same period. While investors were worried about the economic weakness in North America and Europe, it appeared this was offset by the strength in other geographic markets. Meta Platforms achieved a decent +3% YoY constant-currency revenue growth in the second quarter of this year, after excluding the effects of negative foreign exchange fluctuations such as the USD strength relative to the EUR. The first key metric for META is revenue growth adjusted for foreign exchange effects.
Prior to analyzing Meta Platforms' stock price weakness and seeking out potential catalysts for the company's shares, it is relevant to first highlight a few key Q2 2022 metrics for META. Looking beyond META's current price weakness in 2022 year-to-date, I think there are catalysts for Meta Platforms that could spark a substantial recovery in the company's stock price next year. My favorable view of META remains intact, and this explains why I have kept my Buy rating for Meta Platforms unchanged.
I previously touched on the tech sell off and its impact on META in my earlier article written on June 22, 2022. I reiterate my Buy investment rating for Meta Platforms, Inc.'s ( NASDAQ: META) stock with this latest article focusing on potential re-rating catalysts that could materialize in 2023.
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