These are vintage times for Meta Platforms (NASDAQ:META) investors. The stock has benefitted immensely from the AI-focused tech rally and has surged by 161% over the past year.
But the gains have been based on far more than just mere hype. On the back of a recent outstanding Q4 print, the shares posted a one-day gain of 20%, in the process adding a massive $197 billion to Meta’s market cap in just one session. That amounted to the biggest one-day addition in stock market history.
Does that make the shares now too hot to handle? Not in the slightest, appears to be the answer of Tigress Financial’s Ivan Feinseth, a 5-star analyst rated in the top 3% of the Street’s stock pros
Feinseth not only believes there’s still room for growth but also recently reaffirmed a Strong Buy rating on Meta stock. He raised his price target from $435 to a Street-high of $575, indicating a potential 23% climb from current levels. (To watch Feinseth’s track record, click here)
Summing up his bullish stance, Feinseth said, “META is well-positioned to benefit from ongoing innovation; increasing AI functionality integration and new product introductions will drive further increases in user engagement, and its ongoing cost discipline will drive a further acceleration in Business Performance trends and shareholder value creation.”
In fact, as it consistently invests in enhancing AI tools and capabilities, thereby fueling growth in engagement and revenue, Feinseth considers META “one of the best ways to play the monetization of AI opportunities.”
Not to mention, its positioning in the digital advertising space, where Feinseth expects the social media giant to keep on capitalizing on its dominant position and growing user engagement. Its success propelled by effective click-to-action conversion rates, which indicate “improvements in advertising performance.” This is down to providing engaging in-platform advertising experiences that seamlessly connect advertisers with their marketing data and utilizing AI extensively throughout its advertising platform.
The thing is, there’s still substantial potential for growth, primarily fueled by the ongoing opportunity to monetize its essential apps such as Instagram, Messenger, and WhatsApp. Moreover, the company remains committed to maximizing shareholder returns. Meta recently announced an additional $50 billion share repurchase authorization and introduced its inaugural quarterly dividend of $0.50 per share.
So, that’s the Tigress view, what does the rest of the Street have in mind for META? Almost all are onside. The stock claims a Strong Buy consensus rating, based on a mix of 38 Buys, 2 Holds and 1 Sell. The average target currently stands at $525.59, suggesting the stock will push 10% higher over the coming months. (See Meta stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
