Meta Stock Has Gone Nowhere in Weeks. This Analyst Sees an Opportunity.

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Facebook CEO Mark Zuckerberg unveiled the Meta Platform logo as seen on a smartphone.

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Chris Delmas/AFP via Getty Images

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Shares of the meta platform have traded sideways in the weeks since the company changed its name from Facebook. Stock in HSBC just lost a skeptic,

Meta Platforms stock (ticker: FB) closed 3.6% higher at $317.87 in trading Monday. The S&P 500 index rose 1.2%. This brings the stock’s gains to 0.3% from October 28, the day CEO Mark Zuckerberg announced a corporate rebrand from Facebook to the meta platform.

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Stocks rose on Monday after HSBC analyst Nicolas Cote-Collison raised his rating on the shares. This is not really a ringing support from the analyst, who still has a price target of $300.

“Meta’s investment case remains a delicate balance between the risks of greater regulation and new business opportunities,” Cote-Collison wrote in a note. “We still think the regulation risk to Meta’s business model remains high.”

He writes that risks include regulatory pushback against potential acquisitions of innovative start-ups. Last month, the company was ordered by UK regulators to sell to social-media animated images firm Giphy. Cote-Collison, on the other hand, argues that a further acceleration in the sweeping shift to digital advertising could benefit Meta.

The analyst also believes that Meta could benefit from the metaverse, a theorized next evolution of the Internet where users interact and shop in an interactive virtual world. The company is investing billions in its Reality Labs virtual and augmented reality segments in the coming years.

“If augmented reality/virtual reality becomes the next computing platform, Meta can leverage its experience and take a global lead in this new business,” Cote-Collison wrote.

Write to Connor Smith at [email protected]

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