Mark Zuckerberg ‘Just Getting Started,’ Says Ives; Munster Says ‘Not Too Late’ to Buy Meta and Apple
In a recent development, tech analyst Gene Munster believes that it’s not too late to buy Meta Platforms (NASDAQ:META) despite the stock’s rally this year. Meanwhile, Wedbush analyst Dan Ives expressed his confidence in Meta’s potential, stating that Mark Zuckerberg, the CEO of Meta, is just getting started. Ives sees artificial intelligence (AI) as the next growth driver for Meta and commended the company’s impressive fourth-quarter performance.
Meta reported a 25% increase in fourth-quarter revenue, reaching $40.11 billion. The company also announced its first-ever quarterly dividend and plans to continue paying a cash dividend on a quarterly basis. Additionally, Meta’s focus on efficiency led to a 22% reduction in headcount and an 8% decrease in total expenses.
Meta is also directing its efforts towards competing with Apple Inc.’s Vision Pro headset. The company’s research and development costs increased by 8%, mainly driven by its Reality Labs division, which focuses on Oculus virtual reality technology.
Following the earnings release, Meta’s stock surged by 20%, and it has gained over 37% since the beginning of the year, propelling Mark Zuckerberg back into the top five of the Bloomberg Billionaires Index.
While some investors may have missed out on this rally, Gene Munster from Deepwater Asset Management believes there is still room for growth. Munster emphasized his strong belief in Meta’s potential and stated that the company’s earnings could grow by approximately 50% over the next two years.
Analyst ratings for Meta have been positive overall, with price targets for the stock ranging from $500 to $525. Analyst Eric Sheridan from Goldman Sachs believes that although there may be debates about potential revenue deceleration in 2024, Meta’s fourth-quarter performance has alleviated concerns about platform strength.
Meta also announced the second generation of its own AI chip, aiming to reduce costs and decrease reliance on Nvidia Corp. This move showcases Meta’s commitment to advancing AI technology and its potential impact on the company’s future growth.
Overall, industry analysts and investors remain optimistic about Meta’s prospects, driven by its strong financial performance and continued investment in emerging technologies. With the company’s focus on AI and competition with Apple, Meta is well positioned for further growth in the coming years.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. Investing in stocks involves risks, and individuals should conduct thorough research and seek professional guidance before making investment decisions.
