Jefferies analysts told investors in a note Thursday that Meta Platforms (NASDAQ:META) is seeing the largest year-on-year growth acceleration in Q2 of any major platform.
Analysts, who have a Buy rating and a $280 price target on META, explained that they hosted an expert with visibility into $600 million of digital ad spend and found that Meta Platforms spending is outpacing expectations in the second quarter.
"META is the largest portion of our expert's clients' budget, representing ~50% of spend," the analysts wrote. "Our expert is expecting his clients' META spend to grow 9% y/y in Q2 (vs. 4% in Q1), but he believes there is more likely to be positive upside revisions."
"Against easing comps, our expert anticipates his clients will grow META spend 14% y/y in Q3, 15% y/y in Q4, and 16% y/y in Q1'24."
They added that the biggest drivers of the improving growth have been click-to-messaging ads starting to scale, Reels growth, and performance gains from Advantage+.