Meta Platforms
stock could gain significantly in the next three months, driven by advertising and artificial intelligence, according to a Citi analyst.
Citi analyst Ronald Josey rates
Meta
(ticker: META) a Buy with a $385 price target, which implies a 30% gain from the stock’s closing price on Thursday.
Josey also opened a “90-day Positive Catalyst Watch” on the shares as he anticipates more stock gains to come amid an upsurge in advertising and excitement around AI.
“We believe Meta is taking share of the broader online advertising market,” Josey said in a research note Thursday. This belief is defended by greater advertising demand amid an improving market, the analyst said.
“We believe there remains upside as engagement grows,” he added.
A slowdown in advertising has affected many social-media platforms over the past year. But there have been signs the ad market is improving. Meta’s advertising revenue was $31.5 billion in its second quarter, up 12% from the previous year.
Josey also anticipates the stock will gain after the company provides more insight into its AI investments and plans at the Meta Connect virtual event happening on Sept. 27 and Sept. 28.
Meta stock has been a major beneficiary of AI hype as investors have bought shares of companies with exposure to the technology. Meta stock has surged 151% this year while the tech-heavy
Nasdaq Composite
index has jumped 26%.
Chief Executive Mark Zuckerberg said during Meta’s latest earnings call on July 26 that he planned to share more details regarding AI later this year. Adding: “But you can imagine lots of ways that AI can help people connect and express themselves in our apps: creative tools that make it easier and more fun to share content, agents that act as assistants, coaches that can help you interact with businesses and creators, and more.”
Shares of Meta were rising 2.3% Friday to $302.52.
Write to Angela Palumbo at [email protected]
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