These are vintage times for Meta Platforms (NASDAQ:META) investors. The stock has benefited tremendously from the AI-focused technology rally, rising 161% over the past year.
But the successes are based on much more than just hype. On the back of a recent quarterly report, shares posted a 20% daily gain, adding a whopping $197 billion to Meta’s market cap in just one session. That was the largest daily gain in the history of the stock market.
Does this mean stocks are now too hot to handle? Not in the slightest, appears to be the answer from Tigress Financial’s Ivan Feinseth, a 5-star analyst ranked in the top 3% of stock professionals on the Street
Feinseth is not only convinced that there is still room for growth, but also recently reiterated his “Strong Buy” recommendation for Meta shares. He raised his price target from $435 to a street high of $575, suggesting a potential upside of 23% from current levels. (To view Feinseth’s track record, click here)
Summing up his optimistic stance, Feinseth said: “META is well positioned to benefit from continued innovation; Increasing integration of AI capabilities and new product launches will drive further increases in user engagement, and continued cost discipline will lead to further acceleration of business performance trends and shareholder value creation.”
In fact, Feinseth views META as “one of the best ways to leverage AI opportunity monetization” as the company consistently invests in improving AI tools and capabilities, driving engagement and revenue growth.
Not to mention its positioning in the digital advertising space, where Feinseth expects the social media giant to continue to benefit from its dominant position and growing user engagement. Its success is driven by effective click-to-action conversion rates, which indicate “improvements in advertising performance.” This is due to delivering engaging in-platform advertising experiences that seamlessly connect advertisers with their marketing data and the extensive use of AI across the advertising platform.
The fact is that there is still significant growth potential, driven primarily by the continued ability to monetize its key apps like Instagram, Messenger and WhatsApp. Additionally, the company remains committed to maximizing shareholder returns. Meta recently announced another $50 billion share repurchase authorization and introduced its first quarterly dividend of $0.50 per share.
So that’s Tigress’s view. What does the rest of the Street plan to do with META? Almost everyone is on site. The stock receives a Strong Buy consensus rating based on a mix of 38 Buys, 2 Holds, and 1 Sell. The average target is currently $525.59, suggesting the stock will rise 10% in 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 for informational purposes only. It is very important to do your own analysis before investing.