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Zev Fima, an analyst, has increased the price target for Meta Platforms (META) to $650 per share, despite a decline in the company’s stock during after-hours trading. Fima’s decision was based on the robust third-quarter results, which exceeded expectations and showcased strong revenue guidance for the current quarter.

As of the time of writing, Meta’s stock was down by 3.18% during after-hours trading, trading at $573 per share. Fima’s new price target suggests a potential upside of over 9.5% from Wednesday’s closing price. Although Fima maintained a “2” rating on the stock, indicating short-term profit-taking opportunities, he emphasized that Meta Platforms delivered a strong third quarter and provided revenue guidance above expectations.

Fima commended Meta for its dominance in targeted advertising and strong user engagement, which creates a beneficial cycle between users and content creators. He also highlighted the company’s significant scale, supporting its growth in artificial intelligence, the metaverse, and virtual reality projects. Fima praised Meta’s management for their focus on cost control.

Despite the after-hours stock dip, Fima urged investors to focus on Meta’s strong third-quarter performance, including revenue surpassing expectations and operating margin expansion. He believes that long-term investors will benefit from patience as the company’s strategic investments continue to pay off.

Meta Platforms reported third-quarter revenue of $40.59 billion, surpassing analyst estimates of $40.29 billion. The company also reported adjusted earnings of $6.03 per share, exceeding expectations of $5.25 per share. This strong financial performance highlights Meta’s strategic direction and growth potential. Additionally, Meta’s core business experienced a significant 19% increase.

Meta’s aggressive investment in artificial intelligence suggests ambitions to monetize search, as noted by Gene Munster of Deepwater Asset Management.