Meta, the parent company of Facebook, is set to announce its first-quarter earnings after the market closes on Wednesday. Analysts are anticipating strong results, with expectations of significant year-over-year sales growth since 2021.

The company is projected to report earnings per share of $4.32 and revenue of $36.16 billion. Additionally, it is expected to have 2.12 billion daily active users and 3.09 billion monthly active users, with an average revenue per user of $11.75.

Meta has been a standout performer on Wall Street, with its stock nearly tripling in value last year and continuing to rise by 40% in 2024. CEO Mark Zuckerberg’s focus on efficiency and rebuilding the ad business through artificial intelligence has been key to the company’s success.

Following a challenging period in 2022 due to factors like Apple’s privacy update, Meta has managed to regain market share in the digital advertising space. The company’s investments in AI models for targeted ads and automated ad creation tools have been paying off, with analysts predicting a 26% revenue increase compared to the previous year.

The company’s growth has been supported by a recovering economy and increased spending from Chinese retailers like Temu and Shein, who are utilizing Facebook and Instagram for advertising purposes. While concerns about reduced spending from Chinese advertisers exist, overall momentum for Meta remains strong.

Investors are keen to see how Meta’s innovative advertiser tools and success in video monetization will impact its first-quarter results. The company’s ability to adapt to changing market conditions and deliver strong financial performance will be closely watched by analysts and investors alike.