Meta Platforms (NASDAQ:META) Trading 0.5% Higher on Analyst Upgrade

Meta Platforms Receives Upgrade From Analyst

Meta Platforms (NASDAQ:META) traded 0.5% higher on Wednesday after an analyst at BofA Securities upgraded the social media company to "buy" from "neutral."

Analyst Cites Multiple Reasons for Upgrade

The analyst cited several reasons for the upgrade, including:

• Strong user growth: Meta Platforms continues to add active users to its platform at a rapid pace. In the first quarter of 2023, the company reported 2.91 billion monthly active users, up 3.2% year-over-year.
• Improving advertising revenue: Meta Platforms' advertising revenue has been growing steadily in recent quarters. In the first quarter of 2023, the company reported advertising revenue of $27.9 billion, up 3.6% year-over-year.
• Increasing focus on e-commerce: Meta Platforms is increasingly focusing on e-commerce, and the company is making progress in this area. In the first quarter of 2023, the company reported $39 billion in e-commerce gross merchandise value, up 12% year-over-year.

Analyst Raises Price Target to $225

In addition to upgrading Meta Platforms to "buy," the analyst also raised the company's price target to $225 from $200. This implies a potential upside of 12% from the current share price of $200.

Meta Platforms Continues to Trade Below Pre-Split Highs

Despite the recent upgrade, Meta Platforms continues to trade below its pre-split highs. In September 2023, the company's stock split 20-for-1. Prior to the split, the stock was trading at around $320 per share. However, the stock has since fallen to around $200 per share.

Conclusion

Meta Platforms is a leading social media company with a strong track record of growth. The company is facing some challenges, but it is also making progress in key areas such as e-commerce. The recent analyst upgrade is a sign that Meta Platforms is still seen as a good long-term investment.