Shares of Meta Platforms, formerly known as Facebook, have been on a remarkable upward trajectory, and analysts are weighing in on how this momentum can be sustained.
Despite a 0.7% dip in Thursday trading, the stock remains close to its all-time high of $382.18 achieved on September 7, 2021, according to Dow Jones Market Data.
Guggenheim analysts, led by Michael Morris, remain optimistic about Meta Platforms’ future. In a recent report, they maintained a Buy rating on the stock and highlighted the positive performance of Quest 3, Meta’s mixed-reality headset.
According to third-party global download data, Quest 3 saw a 6.4% increase in downloads compared to the previous year in December. This growth is especially impressive considering that Quest 3 is priced higher than its predecessor, Quest 2.
Early trends in January also indicate strong growth potential for Meta Platforms in 2024. Despite disappointing numbers in Meta’s Reality Labs unit last year, holiday download figures suggest that this quarter and year hold promise for significant growth.
Mizuho Securities issued a report on Wednesday, raising their price target to $470 from $400 and reiterating a Buy rating on the stock. The team at Mizuho Securities believes that consensus estimates for sales growth are too conservative and anticipate a decline in operating expenditures. Additionally, they predict the implementation of artificial intelligence for automated customer service on WhatsApp messaging, further bolstering shares.
As Meta Platforms’ success continues to capture Wall Street’s attention, industry experts eagerly anticipate the company’s performance in the coming months.