In this year's stock market, Meta, the parent company of Facebook, has performed exceptionally well, particularly among the so-called "Big Seven" stocks, where it stands out even more than Nvidia.
Recently, Meta's stock price continued to rise in Monday's trading, primarily due to a top Wall Street analyst raising the price target for the stock.
Meta (Stock Code: META) hit a new high in today's trading, with the overall market performing brilliantly. Since the beginning of the year, its market capitalization has increased by approximately $510 billion. Since the company released its second-quarter earnings report at the end of July, the stock has risen by nearly 20%.
The report mentioned that Meta's overall revenue surged by 22%, and it is expected that sales in September will range between $38.5 billion and $41 billion. This growth allows the company to be more flexible in capital expenditure, especially in AI investments.
It is predicted that Meta's AI investment in 2024 will reach between $37 billion and $40 billion, significantly impacting platforms like Instagram, where user engagement time and ad impressions have seen significant growth. Meta's ad revenue, including Facebook, Instagram, and WhatsApp, reached $38.3 billion, an increase of 22% year-over-year.
Meanwhile, ad impressions also grew by 10% compared to the same period last year. To further enhance user engagement and expand advertising resources, Meta has also introduced a full-screen video player and a unified video recommendation system.
In terms of analysts, Citigroup's analyst Ronald Josey raised Meta's stock price target by $65, setting a new target price at $645. He believes that Meta's investments and the overall strong performance of the global advertising market will continue to support the company's growth in the coming months. He also mentioned that the increased usage and ad placements of Meta's short-form video product, Reels, will continue to drive Instagram's development.
"Meta's discovery engine and content recommendation model, partly due to their investment in generative AI, have given the company a competitive edge," Josey said. According to him, Meta's competitive advantage has become "deeper and broader," making it one of the most investable choices in the internet industry.
It is worth mentioning that Meta will release its third-quarter earnings report on October 23, with an initial forecast of $5.21 per share and expected revenue of $39.33 billion. Currently, Meta's stock price has risen by 0.4% in early trading to $563.46, bringing its overall increase for 2024 to about 62.7%, with a market capitalization rising to $1.43 trillion.
Key Points:
📈 Meta's stock has performed exceptionally well, with a market capitalization increase of $510 billion this year.
💰 It is expected that AI investments in 2024 will reach between $37 billion and $40 billion, driving ad revenue growth.
📊 Citi analyst raised Meta's stock target price to $645, believing its competitive advantage has deepened.
