Meta Platforms, the parent company of Facebook, Instagram, and WhatsApp, has surpassed a market cap of $1 trillion as tech stocks continue to surge. The company’s shares rose by 1.9% in afternoon trading on Wednesday, reaching a valuation of $1.01 trillion. Meta’s market success comes after Microsoft breached the $3 trillion valuation earlier in the day.
Citi analyst Ronald Josey has reiterated his BUY rating on Meta, with a raised target price of $440, up from $425. Josey believes that Meta remains the top pick in the Internet sector for 2024 as engagement continues to expand. He also mentioned that the company benefits from a multi-year product roadmap involving Social, GenAI, and Ads innovations, with expanding margins.
Mizuho, another financial firm, holds a similar positive outlook on Meta. They recently stated that WhatsApp could increase Meta’s revenue base by a third over time by implementing artificial intelligence to automate customer service. Mizuho’s BUY rating on Meta further reinforces the positive sentiment surrounding the company.
Over the past year, Meta’s shares have seen a staggering increase of over 170%, with year-to-date growth surpassing 10%. Investors and analysts are eagerly awaiting the company’s fourth-quarter results, scheduled to be announced on February 1 after the close of trading. Analysts’ consensus expects Meta to report earnings of $4.94 per share and revenue of $39.04 billion.
As Meta’s dominance in the tech industry continues to grow, its success is attributed to various factors such as expanding engagement, innovative product development, and the potential for increased revenue through artificial intelligence integration. With a strong buy rating from analysts and its impressive performance in the market, Meta remains a prominent and promising player in the ever-evolving tech sector.
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