In a report released today, Mark Mahaney from Evercore ISI reiterated a Buy rating on Meta Platforms (META – Research Report), with a price target of $750.00.
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Mark Mahaney has given his Buy rating due to a combination of factors, primarily focusing on the monetization potential of WhatsApp. Meta’s decision to introduce paid advertisements and subscription fees on WhatsApp is expected to generate significant revenue, with projections suggesting a $10 billion advertising run-rate by fiscal year 2028. This initiative is anticipated to increase Meta’s revenue and operating income by approximately 4% and 5% respectively, even under conservative assumptions.
Furthermore, Meta is recognized as a High Quality Compounder due to its successful track record in creating and monetizing new platforms, such as Threads and Facebook Marketplace. The company’s effective use of AI to enhance user engagement and return on ad spend further supports this positive outlook. The WhatsApp monetization strategy is seen as a substantial growth opportunity, reinforcing the Buy rating for Meta’s stock.
Mahaney covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Netflix, and Meta Platforms. According to TipRanks, Mahaney has an average return of 14.8% and a 59.39% success rate on recommended stocks.
In another report released today, Oppenheimer also maintained a Buy rating on the stock with a $775.00 price target.
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