Cantor Calls Meta (META) Its Favorite Megacap Stock, Reiterates $920 Price Target

Meta Platforms, Inc. (NASDAQ:META) is one of the Trending AI Stocks on Wall Street. On August 20, Cantor Fitzgerald analyst Deepak Mathivanan reiterated an Overweight rating on the stock with a $920.00 price target. The rating affirmation highlights growth in Meta’s Reels feature across its platforms.

Based on a recent filing by META for its defense in the FTC Antitrust case, Reels as a percentage of total time spent on “FB and IG has increased by 25-pts and 35-pts, respectively, between 2023-25E.”

Moreover, the daily time spent per daily active user on Reels has grown estimatedly threefold on Facebook and fourfold on Instagram. This has contributed majorly to overall engagement increases across Meta’s platforms.

Meanwhile, under or unmonetized surfaces faced the sharpest decline, helping Meta attain healthy impression growth for its advertising business.

“3) Under- or unmonetized surfaces, such as profile views, groups, photos, etc., saw the sharpest decline in time spent (both on % and # basis) – which likely helped META achieve healthy impression growth. In FY22, FB feed monetized at the highest rate on a per-minute basis, ahead of IG Stories and IG Feed, and ~5x that of Reels (Exhibit 5). 5) Lastly, based on recent commentary from META on monetization, we estimate that Reels (FB and IG) likely represents ~45% of US ad revenues in FY25E.”

The disclosures are a testament to META’s successful efforts over the last three years, with trends anticipated to continue as the company integrates advanced AI models “further into its surfaces.”

“These disclosures point to META’s successful efforts over the last three years to increase engagement on commercial surfaces, in addition to driving monetization higher. As META integrates advanced AI models with reasoning capabilities further into its surfaces, we see plenty of runway for these trends to continue. META remains our favorite megacap stock.”

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