William Blair analyst Ralph Schackart reiterated a Buy rating on Meta Platforms (META) stock in reaction to the social media giant’s annual Meta Connect conference. The analyst expressed optimism about the company’s innovation and artificial intelligence (AI) adoption, and stated that he sees 25% upside potential over the next 12 months. Schackart noted that the Connect event highlighted three key areas of innovation for the company – smart glasses, virtual reality, and AI.
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William Blair Analyst Weighs in on Meta Platforms Stock
Schackart stated that at the Meta Connect event, CEO Mark Zuckerberg highlighted ongoing technical innovations, including four new lines of glasses, two in partnership with Oakley and two with Ray-Ban. Moreover, developer presentations focused on Meta’s progress in virtual reality and its vision for AI and wearable technology.
The analyst noted that the company is expanding its smart glasses product line to varying use cases like conversing with others and accessing technology while being active. Schackart is optimistic that the use cases for this technology will increase as the battery life evolves.
Moreover, Schackart believes that advancements in video and picture quality, coupled with battery life, will drive an enhanced list of use cases. The analyst contends that while simple use cases, such as reading texts and playing music, will be appreciated by users, the price point needs to drop to around $200 for this technology to ensure mass-market adoption, or approximately a 30% penetration level. Overall, the analyst views Meta Platforms as a long-term AI leader.
Is META Stock a Buy or Sell Now?
Wall Street has a Strong Buy consensus rating on Meta Platforms stock based on 41 Buys and six Holds. The average META stock price target of $872.12 indicates about 12% upside potential from current levels. META stock has risen about 33% year-to-date.
