Meta Platforms (NASDAQ:META) has made a lot of advancements over the years. From social media to virtual reality to artificial intelligence, it’s worked to become a major presence in a variety of fields. Now it’s taking a page out of streaming media’s playbook and offering up ad-free access to its sites in the UK. Investors are pleased, but only moderately so, sending shares up slightly in Wednesday afternoon’s trading session.
Bank of America’s team of analysts kept its Buy rating on Meta Platforms in place and also set a price target of $375 on the stock as well. Bank of America was pleased to see an offer of 10 Euros per month—roughly $10.52 in USD—for access to a Facebook or Instagram that comes without advertising. An additional six Euros would cover any other linked account. That’s the price for desktop access; for mobile, it’s a bit higher, going to 13 Euros per month since there’s the issue of app store commission to consider. However, Bank of America’s analysts aren’t quite sure just how well that will go over and think many users will stick to the free version.
Here’s a problem, however; a recent Digiday Research report noted that, for many agencies, Meta Platforms sites aren’t worth the investment. That’s going to make it that much tougher for Meta to find advertisers, and if there are enough people paying to opt-out, then that will only hit the chances of selling ad space that much harder. Meta Platforms’ primary stock in trade is consumer eyeballs, and without those watching and reading ads, there’s just not that much point. Worse, one of Meta’s new experiments, AI-generated stickers, are generating some rather raunchy and unsettling content. A Gizmodo report notes several such incidents, including Karl Marx in briefs and a buxom Elon Musk.
Is It a Good Time to Buy Meta Stock?
Analysts, meanwhile, are over the moon. Currently, Meta Platforms has a consensus rating of Strong Buy, thanks to 42 Buy ratings and just two Holds. Further, with an average price target of $375.90, Meta Platforms stock offers investors 23.12% upside potential.