Meta Platforms Inc (NASDAQ:META)
The efforts that Facebook and Instagram parent company Meta Platforms (NASDAQ:META) CEO Mark Zuckerberg is doing to cut costs have now gained the support of another industry expert.
Recently, Meta, which was once known as Facebook, Inc., made an important announcement regarding the enhancement of its stock options, which have already experienced a large increase over the course of the previous several years. This upgrade is going to deliver new features, improved performance, and a more enjoyable user experience, all of which have the potential to radically alter the current state of the stock market.
In a note that was published on Wednesday, Argus Research analyst Joseph Bonner changed his recommendation on Meta stock (NASDAQ:META) from Hold to Buy. He has a target price of $270 in mind. The price of Meta stock is up 76% for the year to date. In recent trade, it has decreased by 1.5% and was priced at 211.60 dollars. The S&P 500 was 0.5% lower than it was when the market opened.
Bonner refers to the goals for reduced expenditures, which CEO Mark Zuckerberg has termed the “year of efficiency” for the corporation. Following the announcement of the termination of 11,000 employees in November, Meta stated that another 10,000 positions would be eliminated in March. According to Bonner, Meta is engaging in some of the most severe cost-cutting in the technology industry.
However, the cost cuts do demonstrate prudence by management and should improve profitability, thus providing the market with what it wants, he wrote. “Cost cutting will not do much for Meta’s revenue issues, which reflect macroeconomic uncertainty, the slowdown in digital advertising, and the impact of Apple AAPL –1.13%’s ad tracking policy.”
In recent years, Meta has been confronted with intense competition from TikTok; yet, a prospective ban on TikTok in the United States, or at the very least, continued opposition from lawmakers, would work to Meta’s advantage. In addition to this, Bonner cites “erratic strategic moves” made by Twitter since Elon Musk took control of the company, which have hampered its functionality. While he acknowledges that Twitter did not pose a significant danger to Meta, he does note that it was attractive to influential users like celebrities, media influencers, and politicians.
He added that “we believe that challenges at TikTok and Twitter could benefit Meta, which continues to add users to its platform.” “We believe that challenges at TikTok and Twitter could benefit Meta.”
In a report published on Wednesday, Jefferies analyst Brent Thill increased his price target, moving it up from $225 to $250. He is still considered to be a Buy. Thill expects that the company can record an uptick in revenue growth in the second half of 2023. This is in addition to any potential upside from belt-tightening that may occur.
He argued that “the combination of AI investments leading to higher engagement and easier comps should drive accelerating rev growth.” “The combination of AI investments leading to higher engagement and easier comps.”
Meta Stock, a stock option that gives investors the ability to trade on the value of Facebook’s equity, has shown consistent growth over the past few years. This growth has enabled investors to make more money. Facebook is now one of the most valuable corporations in the world, as evidenced by the fact that it has more than 2.8 billion monthly active users and a market price of more than $900 billion. Because of the recent enhancement that was made to its stock options, it is anticipated that Facebook Meta Stock would experience an increase in both its value and its performance. As a result, this stock has become an investment possibility that many investors find appealing.
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