If 2023 was a “year of efficiency” for Meta Platforms (NASDAQ:META), then 2024 could be a year of spectacular growth. Before you decide that META stock is exhausted and due for a pullback, consider Meta Platforms’ opportunities to expand its market share in mixed-reality headsets, short-form videos and elsewhere.
Besides, an expert on Wall Street just issued an eyebrow-raising price target on Meta Platforms stock. So, let’s conduct our due diligence and consider how this “Magnificent Seven” member could really have a magnificent 2024.
Meta Platforms Could Reel in Big-Time Revenue With Reels
The perma-bears will always find reasons to worry about successful companies like Meta Platforms. For example, they might point out that Meta Platforms’ Instagram is cutting jobs.
Before the bears celebrate this unfortunate news, they should obverse that Instagram is only eliminating 60 jobs. That’s not a gigantic workforce reduction in the grand scheme of things. Furthermore, it’s probably just an extension of 2023’s “year of efficiency” for Meta Platforms.
Guggenheim analyst Michael Morris doesn’t seem to be losing sleep over Meta Platforms’ near-term challenges. Morris reiterated his “buy” rating on Meta Platforms stock and emphasized recent numbers pertaining to Meta Platforms’ mixed-reality headset, known as Quest 3.
Concerning Quest 3, the data indicate that downloads increased 3% year over year in December. That’s actually pretty impressive, considering Quest 3 costs more than Quest 2. Moreover, per Barron’s, Morris and other Guggenheim analysts noted that “January trends so far also point to strong growth, suggesting opportunities for 2024.”
This META Stock Price-Target Hike Will Surprise You
I’m not suggesting that Meta Platforms will have an easy path to profits this year. The company still has to deal with pushback from lawmakers/regulators. Also, the jury is still out on whether Meta Platforms will successfully commercialize its Quest 3 headsets in 2024.
Nevertheless, Mizuho Securities analyst James Lee sees not just one, but three different potential positive catalysts for Meta Platforms. First, Meta Platforms could improve its sales through better monetization of Meta’s Reels short-form videos. Last year, Reels revenue accelerated rapidly and even narrowed in on popular short-form video platform TikTok.
Second, according to a Barron’s report, Lee expects Meta Platforms’ “guidance on operating expenditures to go down over the course of the fiscal year.” In other words, 2024 might be a “year of efficiency” much like 2023 was for Meta Platforms.
Additionally, Lee sees the potential for Meta Platforms’ WhatsApp messaging service to boost its revenue base by one-third. This is possible, Lee contends, as Meta Platforms can use artificial intelligence (AI) to automate WhatsApp’s customer service.
With all of those catalysts in mind, analysts with Mizuho reiterated their “buy” rating on META stock. They also lifted their price target on Meta Platforms shares from $400 to a much more optimistic $470.
It’s Not Too Late to Buy Meta Platforms Stock
Meta Platforms stock zoomed higher last year. However, the skeptics are wrong if they think the stock has to pull back soon. With multiple positive catalysts at work, Meta Platforms should improve in crucial areas and deliver excellent sales growth.
Hence, it’s foolish to bet against Meta Platforms in 2024. META stock might or might not reach Lee’s $470 price target in the next 12 months. Still, the next stock-price move is probably to the upside, so don’t hesitate to seize the opportunity and buy a few Meta shares today.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
