Meta Platforms (NASDAQ: META) stands as the globe’s largest online social network, boasting an impressive user base of over 3.6 billion active monthly users. Within this vast community, users interact through diverse means, including messaging and the sharing of news, photos, and videos.
On the video front, Meta is actively constructing a library of premium content, capitalizing on its monetization potential through advertisements and subscription earnings, a venture it terms “Facebook Watch.”
The Meta ecosystem revolves predominantly around the Facebook application, Instagram, Messenger, WhatsApp, and the numerous supplementary features connected to these platforms. Users enjoy the convenience of accessing Facebook on both mobile devices and desktop computers.
Notably, the primary source of Meta’s revenue derives from advertising, accounting for more than 90% of its total earnings. The United States and Canada contribute 50% of this revenue, while Europe contributes 25%.
With gross margins exceeding 80%, Meta operates at a margin exceeding 30%.
Meta Platforms Stock Analysis
On October 17, Truist Financial analyst Youssef Squali reaffirmed his Buy rating for Meta Platforms and established a price target of $390.00. As of last Thursday, the company’s shares closed at $312.81, nearly reaching their 52-week high of $330.54.
According to data from TipRanks.com, Squali is a distinguished 5-star analyst, boasting an impressive average return of 14.3% and a success rate of 52.2%. He primarily focuses on the Technology sector, providing insights on stocks such as NerdWallet, Inc. Class A, ODDITY Tech Ltd. Class A, and DoubleVerify Holdings.
The general consensus among analysts indicates a Strong Buy rating for Meta Platforms, with an average price target of $376.42, signifying a potential 17.7% increase from the current stock price. Additionally, in a report published on October 12, Mizuho Securities also reiterated their Buy rating for the stock, setting a price target of $400.00.
Meta (NASDAQ:META) Unveils Broadcast Channels To Push User Engagement
In line with Meta’s continuous efforts to boost user engagement across its suite of apps amid growing competition from platforms like TikTok and Telegram, the company introduced the Broadcast Channel feature, which was previously made available on WhatsApp and Instagram.
Meta’s Latest Offerings
Meta’s CEO, Mark Zuckerberg, recently mentioned the impending launch of the Broadcast Channel, coinciding with Meta’s introduction of various new AI-driven features such as AI stickers and AI-powered image editing. These innovations aim to enhance user experiences and engagement across Meta’s range of applications and devices.
Additionally, Meta unveiled Meta AI, an advanced conversational assistant accessible on WhatsApp, Messenger, and Instagram in the United States.
Meta has been witnessing a surge in user engagement, as evidenced by robust trends across its apps. During the Q2 conference call, Mark Zuckerberg highlighted that more than 3.8 billion people use at least one of Meta’s apps every month.
While Meta is successfully boosting user engagement, it’s also leveraging generative AI-powered features to enhance monetization for advertisers. As Meta continues to roll out new features for both users and advertisers, let’s explore the recommendations of analysts regarding its shares.
Is Meta Platforms Stock Poised for Growth?
Meta’s substantial cost-cutting measures, improved user engagement, and an anticipated rebound in advertising revenue have propelled its stock price. Meta Platforms’ stock has seen a year-to-date increase of over 163%.
Despite this remarkable price appreciation, Meta’s innovations in AI, mixed reality headsets, and smart glasses could potentially further drive up its stock value.
This optimistic outlook is reflected in Wall Street analysts’ bullish sentiment towards the company. Meta’s stock has garnered 41 Buy ratings and two Hold ratings, resulting in a Strong Buy consensus. The average price target of these analysts, at $376.42, suggests a potential upside of 18.76% from the current levels.
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