Street Calls of the Week
Investing.com - Meta Platforms Inc. (NASDAQ:META), the $1.84 trillion market cap social media giant with impressive 82% gross profit margins, saw its stock rise after Citizens analyst reiterated a Market Outperform rating with a $900.00 price target. According to InvestingPro analysis, the company currently appears overvalued at $733.51 per share.
The research firm highlighted AI as a significant growth driver for Meta, noting that artificial intelligence improvements continue to enhance advertiser returns and drive consistent spending on the platform. This is reflected in Meta’s strong 19.4% revenue growth over the last twelve months.
Citizens emphasized that "AI is improving every aspect of Meta’s business," pointing specifically to the company’s launch of Business AI, an AI sales concierge capable of answering questions, recommending products, and handling sales transactions.
Early adopters of Business AI are reportedly experiencing better conversion rates and higher average order values due to improved upselling capabilities, according to the research note. The AI-powered conversations also provide brands with new customer insights they can use to address pre-purchase concerns.
The firm also noted Meta’s ongoing updates to its content recommendation models to improve recency, further demonstrating how AI continues to drive "material improvements across Meta’s business."
In other recent news, Instagram, part of Meta Platforms, is exploring the development of a dedicated TV app to expand its video presence, potentially introducing new competition for YouTube. Instagram chief Adam Mosseri shared this initiative at the Bloomberg Screentime conference, indicating that while a TV app is being considered, there is nothing official to announce yet. Meanwhile, TD Cowen has maintained its Buy rating on Meta Platforms with a price target of $875, reflecting confidence in the company’s continued strong advertising growth through the third quarter of 2025. Additionally, Meta has enhanced Facebook Reels by upgrading its recommendations engine, which now learns user interests faster and highlights more recent content, improving the user experience. Meta has also launched communities on Threads, allowing users to engage in public discussions around shared interests such as basketball and K-pop. These developments highlight Meta’s ongoing efforts to innovate and expand its platform capabilities.
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