Social media stock Meta Platforms (NASDAQ:META) made some enemies not so long ago when it halted Reels Play bonus payments. Now, there are signs that Reels advertising is making a comeback as Meta looks for new monetization capability. Meta Platforms stock, as a result, is up fractionally in Tuesday afternoon’s trading.
Meta officials took to a blog post to announce the latest changes, noting that it would help provide a means to measure the performance of each individual reel on the Reels platform. This, in turn, would allow the content creators involved to see more money depending on how well the videos in question performed. Similar testing would show up on Instagram in the next few weeks as well, Meta noted. The latest version of the program requires creators to be at least 18 years old, live in one of 52 countries eligible for the program, and meet a few other requirements as well.
With Alphabet’s (NASDAQ:GOOG) YouTube making it clear that shorts are the new priority, it makes sense for Meta to incentivize users to make Reels. And with Meta also putting a new focus on augmented reality to include not only Reels advertising but also Facebook Stories, it’s clear Meta is trying to not only save cash with its recent string of layoffs, but also by finding new revenue streams.
Overall, Meta Platforms is heavily favored by analysts. With 39 Buy ratings, five Holds, and two Sells, META stock is currently considered a Strong Buy. Further, it offers investors 18.58% upside potential thanks to its average price target of $278.97 per share.
