Shares of Facebook parent Meta Platforms (META 3.02%) are finally getting some love. Following a year-to-date beating that was worsened by the company's disappointing fourth-quarter guidance, the stock rose as much as 3.3% on Wednesday. As of 11:15 a.m. ET, the stock was up 2.6%.
The tech stock is likely up due to a combination of factors, including an upbeat day for the overall market and an analyst's move to reiterate a buy rating for Meta Platforms' shares.
The stock's more than 30% drawdown following Facebook's fourth-quarter earnings report is creating a great buying opportunity, according to Tigress Financial analyst Ivan Feinseth. The analyst has a $466 12-month price target on the stock, as well as a "strong buy" rating. The analyst says that similar warnings of future revenue growth slowdowns in the past proved to present great buying opportunities; Feinseth implies that this situation could prove to play out similarly as it has in the past.
Meanwhile, the overall market is having a good day. As of this writing, the S&P 500 is up 1.1% and the tech-heavy Nasdaq Composite is up 1.5%. This optimism in the market could be bolstering returns for Meta Platforms stock.
In Meta's fourth-quarter earnings release, the company's CFO guided for top-line growth of just 3% to 11% in Q1. The company expects multiple headwinds to weigh on its business, including the impact of recent changes to the way ads are tracked and measured on Apple's iOS and a tough year-ago revenue comparison.