Zuckerberg's launches Threads copying Twitter, makes Meta analysts even more bullish: Here's why
Meta Platforms released Threads, a platform similar to Twitter. Users' reactions to Threads have been mixed. Nonetheless, one bullish analyst has shown even more faith in the company's stock.
The price objective for Meta has been increased from $280 to $335 by KeyBanc Capital Markets analyst Justin Patterson, who maintains an Overweight rating on the stock. This suggests a possible increase of 14% from current levels. According to Patterson, Threads' global release on Android and iOS removes any potential adoption limitations.
This is the basic idea of his thesis. He emphasises how Reels and Stories were taken from TikTok and Snapchat, respectively, and how Meta also integrated elements that are comparable to those of Twitter. Patterson claims that Meta may increase KeyBanc's projected revenue for 2024 by $800 million to $6.7 billion if it can reach half of Facebook's U.S.-Canada users or a sizable chunk of Twitter's U.S.
audience. He also anticipates that global monetization will match that of the United States. According to Patterson, Threads won't have much of an immediate effect because Meta is more concerned with adoption than profitability.
However, he emphasises that Meta's primary advertising platform is still strong, which has caused analysts to raise their estimates for 2023 and 2024 earnings per share by 4% to 10%, to $12.81 and $16.77, respectively. The strong top-line performance, operational effectiveness, and continued share buybacks of Meta are credited with this optimism. The shares of Meta's finished at $294.37 on Wednesday, representing a 2.92% rise.Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!
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