Meta Rockets to Record High: Analysts Predict 50% Market Share Boost

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Los Angeles, CA – Meta Platforms, Inc. saw a surge in its stock price on Thursday, reaching an intraday record high, as analysts expressed bullish projections for the tech giant.

Analysts Upbeat on Market Gains

Jefferies and RBC Capital Markets raised their price targets for Meta, citing the company’s growing market share in digital advertising. Jefferies increased its target to 5 from 0, while RBC Capital Markets set its sights even higher, at 0 from 5.

The analysts believe that Meta will capture a significant portion of incremental industry advertising dollars this year, bolstering its revenue and profitability. Jefferies analysts highlight Meta’s investments in capital expenditures and its focus on improving its ad business through artificial intelligence as key drivers of its success.

Efficiency Measures Paying Off

Meta has implemented significant cost-cutting measures, eliminating thousands of jobs and focusing on streamlining its operations. CEO Mark Zuckerberg has emphasized the company’s commitment to efficiency going forward. These measures have contributed to Meta’s resurgence, with its stock price skyrocketing since the start of last year.

Meta Edging Out Rivals

Meta’s gains come at a time when it faces stiff competition from rivals like Amazon and Google. However, analysts note that Meta has gained market share on top competitor Google, due in part to advertiser resistance to Google’s push for automated ad campaigns.

Additionally, Meta is likely benefiting from the potential ban on TikTok in the U.S., as advertisers seek alternative platforms to reach their target audiences.

Outpacing the Market

Despite a broader market decline on Thursday, Meta’s stock closed up less than 1%, indicating its resilience in the face of economic headwinds. Over the year, Meta shares have soared by approximately 45%.

The bullish sentiment among analysts signals confidence in Meta’s future prospects, as the company navigates the evolving digital advertising landscape and positions itself for continued growth.

Image:

[Image of Meta founder and CEO Mark Zuckerberg speaking at Meta Connect event in September 2023]

Caption:

Meta founder and CEO Mark Zuckerberg speaks during the Meta Connect event at Meta headquarters in Menlo Park, California, on Sept. 27, 2023.

Source:

Josh Edelson | AFP | Getty Images

Data sourced from: cnbc.com