Meta Platforms, the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Paul Chew from Phillip Securities maintained a Buy rating on the stock and has a $830.00 price target.
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Paul Chew has given his Buy rating due to a combination of factors that highlight Meta Platforms’ strong performance and future potential. The company’s advertising business has shown robust growth, with a 21% year-over-year increase in revenue, driven by improved ad performance and higher user engagement. This growth is supported by Meta’s investment in AI, which has enhanced ad conversion rates and increased the average price per ad by 9% year-over-year.
Furthermore, Meta’s strategic focus on optimizing ad volumes and leveraging AI-powered recommendation models has contributed to a significant rise in ad impressions, particularly in the Asia-Pacific region. Chew also notes the potential for monetization in untapped segments like video and Threads, bolstered by Meta’s ongoing investments in AI infrastructure and large language model development. These efforts are expected to strengthen Meta’s core product offerings and sustain its ad business growth, justifying the Buy rating.
Chew covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Meta Platforms, and Singtel. According to TipRanks, Chew has an average return of 20.0% and a 65.33% success rate on recommended stocks.
In another report released on August 1, CMB International Securities also maintained a Buy rating on the stock with a $860.00 price target.