Shares of Meta Platforms (META -2.41%) were moving higher today after the social media giant got a bullish analyst note this morning from Jefferies. In addition, the rising tide in the market today, after Fed Chair Jerome Powell reassured investors about rate cuts yesterday, seemed to benefit Meta.
As a result, the stock was up 3% as of 11:22 a.m. ET, reaching an all-time high.
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Meta has a big fan
In a note this morning, Jefferies raised its price target on Meta stock from $550 to $585 and maintained a buy rating. More importantly, the research firm said that after a new market share analysis, it believed Meta could capture 50% of incremental ad dollars in the industry in 2024, its highest ever.
The analyst predicted its revenue could grow 20%, compared to just 9% for the digital ad industry overall, driven in part by new generative artificial intelligence (AI) tools. It also expected its market share gains to accelerate this year and said it could outgrow Amazon for the first time since 2015.
Meta's momentum continues
Meta's most recent earnings report made it clear that the advertised business is growing briskly, emerging from the earlier doldrums the company faced. Meta's advertising revenue grew 24% in the first quarter, driven by a ramp-up in ads on Reels, its TikTok competitor, and a return to growth in price per ad of 2%, showing that ad demand is returning. Ad impressions also rose 21% in the quarter, a strong sign for usage.
The social media stock has been a top performer since the start of 2023, and if Jefferies is correct, it's likely to continue gaining this year.
