TipRanks offers a convenient way to identify stocks that have a greater potential to yield returns surpassing market averages with the help of the Top Smart Score Stocks tool. Yesterday, the social media and technology giant Meta Platforms (NASDAQ:META) was added to the “Perfect 10” list.
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This tool assesses a stock’s potential using eight crucial factors and assigns a rating from 1 to 10. Notably, stocks rated with a “Perfect 10” Smart Score have consistently outperformed the S&P 500 Index (SPX) by a significant margin.
Here’s Why META Stock Boasts a Perfect Score on TipRanks
Meta has had a stronghold in the social media market for several years with the help of its platforms, Facebook and Instagram. Furthermore, the introduction of new features on these platforms, such as Threads and Reels, reflects Meta’s ability to ensure user engagement and meet growing competition.
Also, the improving advertising market scenario and increased engagement of the younger generation on social platforms are anticipated to boost Meta’s advertising revenues. In addition to this, the company’s initiatives to expand its user base by utilizing generative AI are promising.
During Meta’s Connect conference in late September, the company introduced new AI features, including AI stickers and AI-based image editing, across its suite of apps and devices. Additionally, the company revealed Meta AI, an advanced chat assistant available on WhatsApp, Messenger, and Instagram in the United States. It is worth highlighting that META recently launched two new AI-powered video editing tools, Emu Video and Emu Edit, for Facebook and Instagram.
Last week, analyst Justin Post from Bank of America Securities reiterated a Buy rating on Meta stock with a price target of $384. The analyst is optimistic about the company’s recent partnership with Amazon (AMZN), under which users of the Facebook and Instagram platforms will be able to shop directly from the promoted Amazon ads. Post reiterated a Buy rating on Meta stock with a price target of $384.
Additionally, Post believes this collaboration has the potential to boost conversions, gather more primary user data, elevate user involvement, and accelerate the monetization process for Meta’s messaging assets.
Is Meta a Buy, Sell, or Hold?
Overall, Meta scores Wall Street’s Strong Buy consensus rating based on 36 Buys versus just one Hold rating. The average price target of $384.62 implies a 15.1% upside potential from the current level. The stock has gained a massive 167.9% so far in 2023.
Ending Note
The company’s efforts to enhance its apps with generative AI and its strong market position help drive confidence in Meta’s future trajectory. Further, analysts are bullish on the stock and are looking for further upside in its share price.
