Stock of the week: Meta Platforms, Inc.

Meta Platforms, Inc. (META) is off to a strong start in 2024, reporting significant growth across various financial metrics. For the first quarter ending on March 31, 2024, Meta’s revenues surged by 27% year-over-year to $36.46 billion. The company also reported a remarkable 91% increase in income from operations, reaching $13.82 billion, and an impressive 117% rise in net income to $12.37 billion. Daily active people across Meta’s “Family of Apps” rose by 7% to 3.24 billion, driving a 20% increase in ad impressions and a 6% rise in the average price per ad. 

Meta’s AI advancements are a notable highlight, with the launch of Llama 3, an open-source generative AI model, positioned to rival proprietary models from competitors like OpenAI and Google. This move aligns with Meta’s strategy to leverage its substantial user base to boost AI adoption across its platforms, enhancing both user engagement and ad targeting capabilities. As Meta continues to innovate with AI and make significant investments in its infrastructure, it anticipates ongoing growth in the digital advertising market, further solidifying its position as a leading tech company. 

Here is how the bank analysts view the company currently:  

• The consensus of the bank analysts is "moderate buy." Out of the 65 analysts covering the share, 55 rate the stock with "Buy,” 7 with "Hold," and 3 analysts recommend selling the stock.     

• The average expected upside of the stock price for the next six to twelve months is currently ca 9.22% (closing price on 03/06/2024).