What happened
Shares of Meta Platforms (META 1.06%) were moving higher as the Facebook parent benefited from a pair of positive analyst notes out on the stock this morning.
Shares were up 2.6% as of 11:20 a.m. ET.
NASDAQ: META
Key Data Points
So what
This morning, Citigroup opened a "positive catalyst watch" on Meta, heading into its Connect event on Sept. 27-28, which will include the launch of the Meta Quest 3 as well as new offerings around artificial intelligence (AI), virtual reality (VR), augmented reality (AR), and the company's metaverse technology.
Citi analyst Ronald Josey said he was looking out for details on the company's generative AI plans and expects to see a strong third-quarter earnings report as it gains market share in the broader digital advertising environment. He also sees upside in Reels ads and reiterated a buy rating with a $385 price target.
Loop Capital also reiterated a buy rating ahead of next week's event, saying it expected augmented reality to become a bigger focus of the company. The firm maintained a price target of $375, implying more than 25% upside in Meta stock from its closing price last night.
Now what
CEO Mark Zuckerberg has staked the company's future on the metaverse and related technologies like AI, VR, and AR.
However, its social media properties and advertising remain central to the business and the beginnings of a recovery in advertising have driven the stock to monster gains this year as it's more than tripled from its lows nearly a year ago.
Higher expectations are now baked into the stock, but Meta still seems reasonably priced. Watch out for product releases around the Connect event next week as the stock is likely to move as investors learn more about the Quest 3 and the company's initiatives in AI, VR, and AR.
If Zuckerberg can turn the metaverse division into a viable business while growing the ad business, the stock could still move significantly higher.
