Meta Platforms’ (FB) social networking app Facebook will launch its short video feature Reels in more than 150 countries. Amid the expansion, Facebook will also make it easier for content creators to earn money from overlay ads on videos. FB shares fell 1.98% to close at $202.08 on February 22.
Meta Platforms is the parent company of Facebook, Instagram, Messenger, and WhatsApp. It develops applications that enable people to connect through mobile devices and personal computers.
Plans are underway to allow users to make and see Facebook Reels in other places such as Stories and the Watch tab. The video feature will also be integrated into the top of the news feed. In some countries, users will see the Reels feature in their feed.
According to Reuters, Reels is part of Meta Platforms’ growing content format. Making it available to everyone is a key priority as Facebook seeks to fend off the competition on video content. Making Reels available in more countries comes at a time when people are spending most of their time on Facebook watching videos.
In response to the high video uptake, Meta Platforms has announced new ways in which content creators can make money through the Reels feature. Content creators stand to earn bonuses on the integration of overlay ads on Reels.
Last week, Evercore ISI analyst Mark Mahaney reiterated a Buy rating on Meta Platforms and a $350 price target, implying 73.20% upside potential to current levels. According to the analyst, the dramatic rise of TikTok as a competing digital media is one of the biggest headwinds, which most investors believe poses a significant threat to Facebook. However, the analyst believes the issue is priced into FB shares, currently trading with a price-to-earnings multiple of 13.
Consensus among analysts is a Moderate Buy based on 32 Buys, 11 Holds, and 1 Sell. The average Meta Platforms price target of $332.14 implies 64.36% upside potential to current levels.
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