Stock Groups

Meta Outperformance ‘May Take Time,’ Says Morgan Stanley -Breaking

[ad_1]

© Reuters

Sam Boughedda

Investing.com — Morgan Stanley analyst Brian Nowak lowered the price target on Meta Platforms Inc (NASDAQ:) to $325 from $360, saying in a note to clients that the company’s share “outperformance may take time.”

Meta shares rose 2.11% Wednesday

“Our bottom up analysis of Reels user adoption and monetization rates speak to larger near-term headwinds,” said the analyst, adding that there is, however, “direct evidence that FB will indeed successfully monetize Reels.”

 The analyst acknowledged that the shift towards Reels is “a larger near-term uncertainty.”

Instagram’s Reels product competes directly with the popular, video-focused social media app TikTok. 

We expect Reels advertising will ramp slower because FB prioritizes engagement over monetization. Accordingly, we anticipate a lower advertising load at the moment,” said Nowak.

“We are also mindful that TikTok’s materially lower monetization rate could be a factor impacting how quickly FB pushes advertising within Reels.”

Disclaimer: Fusion MediaThis website does not provide accurate and current data. CFDs include stocks, futures, indexes and Forex. Prices are provided not by the exchanges. Market makers provide them. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media does not accept any liability for trade losses that you may incur due to the use of these data.

Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from relying on data including charts, buy/sell signals, and quotes. You should be aware of the potential risks and financial costs involved in trading the financial market. It is among the most dangerous investment options.

[ad_2]