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Meta is making gains in its ad business as well as cutting costs.
Dreamstime
Shares of Facebook’s parent
Meta Platforms
have soared 130% this year. Analysts at Citi think they can go much higher.
It isn’t just cost-cutting and layoffs that are helping the company. Advertising growth on the Reels video platform is going strong, leading analysts led by Ronald Josey to lift their price target for the shares to $360 from $315.
Citi has a proprietary tracking technique to keep up with Reels ad loads. It shows 17% growth in the quarter so far, compared with a 16% gain in the first quarter.
“Reels is experiencing greater advertiser adoption given its Lo-Fi approach to ads, newer ad products, and continued engagement growth,” Citi said in the note. What’s more, its investments in artificial intelligence “can deliver incremental usage across its users, creators, and advertisers.”
Meta stock (ticker: META) rose 1.4% in premarket trading Tuesday to $282.27.
Write to Brian Swint at [email protected]
Source: https://www.barrons.com/articles/meta-stock-price-layoffs-reels-advertising-30065daa?siteid=yhoof2&yptr=yahoo