Meta reiterated a ‘buy’ after CEO’s remarks at the DealBook Summit

Meta Platforms Inc (NASDAQ: META) is in focus this morning after CEO Mark Zuckerberg reiterated the need to operate with more “efficiency and discipline” at the New York Times DealBook Summit.

How does that fit into its metaverse pivot?

But that doesn’t necessarily mean the multinational will pull back on over $10 billion a year it intends to spend on the “metaverse”, especially since the billionaire CEO still sounded optimistic about the long-term potential of that pivot.

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Nonetheless, the tech behemoth is getting at least some religion on the cost side of things. Last month, it announced plans of lowering its headcount by 13%. And as long as it stays the course, it’s worth buying Meta shares on the current discount – that’s according to Rohit Kulkarni – Analyst at MKM Partners.

Reining in those costs, even more than what they are doing right now will drive the stock higher from these levels. We don’t expect big heroic things. Just a little bit of cost savings and revenue stabilisation will help the stock grind higher.

For the year, Meta stock is down about 65% at writing.

Kulkarni is bullish on ‘Reels’ as well

Speaking at the New York Times DealBook Summit, CEO Zuckerberg also said that “Reels” was doing better than many realised. On top of that, Kulkarni added on CNBC’s “Squawk on the Street”, the Apple headwind is starting to fade as well.

They are slowly ebbing. You have the Apple effect, the TikTok market share effect, and then what they’re doing with Reels monetisation. I think some of the factors are turning from headwinds into neutrals.

Kulkarni has a $140 price target on the Meta stock that represents about a 20% upside from here. Also a positive was a confirmation from the Chief Executive that the Nasdaq-listed firm still commits 80% of its time to its core “Family of Apps” business.

Cutting spending on the metaverse, of course, will be the cherry on top, Kulkarni concluded.