© Reuters. The bright future of meta-platforms: Citi analyst predicts strong growth in ads and AI innovations
Benzinga – by Anusuya Lahiri, Benzinga Editor.
Citi analyst Ronald Josey reiterated a buy rating on Meta Platforms Inc (NASDAQ:META) with a price target of $440.
With the broader online advertising environment strengthening in Q4, the analyst’s Reels tracking suggests an increase in advertising load in Q4 (albeit at a slower pace).
The analyst also noted that new advertising products are attracting increasing demand.
Also Read: Meta Platforms Are Wall Street’s Top Internet Pick, Analysts Hail AI Investments, Advertising Strength
Josey’s Reels ad load tracking suggests ad loads increased to 19.1% in Q4 and +20 basis points quarter over quarter. Reels will likely become revenue-generating in the fourth quarter, he noted.
Monetization effectiveness with new advertising products and advertiser adoption is accelerating.
Meta – parent company of Facebook, WhatsApp and Instagram – remains Josey’s top pick in the internet sector for fiscal 2024 as engagement grows.
The Menlo Park, Calif.-based company benefits from a multi-year product roadmap in social and generative artificial intelligence (AI) and advertising innovations as margins expand, Josey explained.
A major part of Meta’s roadmap is investing billions in Nvidia AI chips.
Meta reports its fourth quarter results on February 1 and the analyst expects the results to be better than expected in terms of revenue growth and profitability.
Analyst forecasts Q4 revenue and EPS of $39.45 billion (vs. consensus of $39.03 billion) and $4.83 (vs. consensus of $4.97 ).
Meta Platforms stock has gained 170% in the last year, outperforming broader indexes.
CEO of Meta Mark Zuckerberg would have benefited from the rise in the share price. He sold $428 million worth of company stock in the last two months of 2023.
This sale comes after two years when the technology mogul had not sold any shares. During this hiatus, Meta’s stock price hit its lowest level in seven years.
Price action: META shares were up 1.19% at $386.29 at last check Tuesday.
Image: Mark Zuckerberg and Meta accused of putting “growth before child safety”
Latest notes for META
| July 2020 | Gardens | Launches cover activated | Buy |
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