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Meta Platforms (NASDAQ:), the social media heavyweight, is projected to witness a significant surge in stock value over the next quarter, according to Citi analyst Ronald Josey’s forecasts. This anticipated rise is linked to a rebound in advertising and the company’s investment in artificial intelligence (AI).
On Friday, Meta’s shares were up over 1%, trading at $299, following Josey’s forecast. He has set Meta’s stock target at $385. This prediction is underpinned by the current upswing in the online advertising market, which Josey believes Meta is successfully capitalizing on.
Despite a general slowdown in advertising across various social media platforms over the past year, Meta has shown signs of resilience. The company reported an advertising revenue of $31.5 billion in the second quarter, marking a 12% increase from the same period last year.
In addition to his optimistic stock target, Josey has initiated a “90-Day Positive Catalyst Watch” for Meta shares. This suggests further gains driven by both advertising and AI developments. He anticipates that forthcoming insights into Meta’s AI strategies and investments will contribute to this upward trend.
The company’s virtual event, Meta Connect, scheduled for September 27 and 28, is expected to provide more clarity on its AI plans. The company’s stock has already benefitted significantly from investor interest in AI technology, with a 151% surge this year alone – a performance that considerably outpaces the tech-heavy index’s 26% jump.
Mark Zuckerberg, Chief Executive of Meta, during their latest earnings call on July 26, hinted at disclosing more about the company’s AI initiatives in the coming months. He suggested that AI applications could enhance user interaction and content sharing across their platforms.
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This story originally appeared on Investing
