By Shares of Facebook’s parent company, Meta Platforms, have skyrocketed 130% this year. Analysts at Citi predict an even higher climb for the social media giant, driven in part by the continuing growth of advertising on its Reels video platform. Ronald Josey and his team of experts have increased their target for the share price to $360, up from $315.
Strong Advertising Growth on Facebook’s Reels Platform
Citi utilizes a proprietary tracking method to stay informed on Reels ad loads and reports a 17% growth in the current quarter compared to last quarter’s 16% increase, attributing the rise to greater adoption of the platform thanks to its Lo-Fi approach to ads and newer ad products, as well as consistent engagement growth.
Investment into AI Paves the Way for More Growth
In addition to these factors, Meta Platforms has been investing in artificial intelligence, which “can deliver incremental usage across its users, creators, and advertisers,” according to Citi’s report.
On Tuesday, META stock (ticker symbol for Meta Platforms) rose 1.4% in premarket trading, settling at $282.27.
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