$350 price target and buy rating

  • Shares of Meta Platforms Inc (NASDAQ:FB) received a $350 price target from Jefferies. These are the details.

Shares of Meta Platforms Inc (NASDAQ:FB) received a $350 price target from Jefferies. And Jefferies analyst Brent Thill reiterated a “Buy” rating on the stock.

Thill adjusted the score after arranging a call with an ad agency expert who revealed 4 major points. One of the big ones is that there is hype for TikTok from advertisers and it currently only accounts for 1% of advertising budgets, which does not impact Meta today. But it can also be seen as a growth opportunity since it only represents 1% today. Major takeaways include:

1.) Macro softness and harsher comps are expected to slow digital advertising growth this year compared to last year.

2.) Facebook’s Q1 ad budget grew 9% year-over-year, with experts predicting 11% growth in Q2

3.) TikTok’s growth is impressive, but the young population and lack of audience data are driving factors for wider advertiser adoption

4.) Snap’s innovation has been impressive and the map could open new opportunities for growth in local ads

“TikTok is growing rapidly but remains below 1% of customer advertising budgets. Our expert noted that there is a lot of excitement for the platform with many of its customers testing out,” Thill wrote in a post. research note: “The biggest issues with the platform are that the audience is overwhelmingly under the age of 25 and audience data is limited compared to peers. While our expert doesn’t think TikTok is “ready for prime time,” he sees them as following a similar trajectory to SNAP, which has become the dominant communication platform for younger users.”

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.

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