Citi Keeps Buy Rating on META, Sees Strong Growth Despite Ad Load Drop

Meta Platforms, Inc. (NASDAQ:META) is one of the 12 Most Owned Stocks by Hedge Funds So Far in 2025. On July 15, Citi maintained its “Buy” rating on Meta Platforms, Inc. (NASDAQ:META) with a price target of $803. The firm believes that the company has “multiple growth catalysts ahead.”

Analyst Ronald Josey called Meta Platforms, Inc. (NASDAQ:META) a “Top-Pick.” Citi’s tracking data shows that the Instagram Sponsored Reels ad load dropped by 100 basis points from Q1 2025 to 24.9% in Q2 2025. This is the first time the ad load declined since Citi started tracking this metric in June 2022. Despite this decline, it is still up 340 basis points compared to Q2 2024.

Citi believes this quarterly decline in ad load can be attributed to Meta Platforms, Inc.’s (NASDAQ:META) new AI advertising tools that deliver more relevant and personalized ads. These AI tools, including Andromeda, GEM, Lattice, and Sequence Learning, can improve ad conversion rates. This makes the ads more effective.

Citi noted that Meta Platforms, Inc. (NASDAQ:META) is “well positioned to deliver better than expected results.” The firm also mentioned a growing online advertising market as a factor supporting the company’s growth.

Meta Platforms, Inc. (NASDAQ:META) is an American multinational technology company that owns and operates social media platforms and communication services, including Facebook, Instagram, Threads, Messenger, and WhatsApp.

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Disclosure: None. This article is originally published at Insider Monkey.