Meta remains top pick at Citi following Reels ad load update

Citi says that with the firm’s Instagram Reels advertising load tracker in Q2-to-date expanding 160 basis points to just under 22%, engagement remains strong across the platform with Reels a key driver of overall advertising growth. While Reels monetization going forward to likely to come from engagement gains, advertiser adoption and pricing versus ad load expansion, the tracking suggests continued gains in Reels ad loads, the analyst tells investors in a research note. Citi says its Reels tracking and recent ad checks suggest a strengthening digital ad environment. It believes Meta is gaining share of spend and says the stock remains its top pick with a Buy rating and $550 price target.