An Analyst Just Named Mark Zuckerberg's Meta a Top Large-Cap Long Idea, Citing AI-Driven Ad Momentum and an Attractive Valuation
Analysts are bullish on the social media company, but investors are less confident.
Overview
Mark Mahaney, an Evercore analyst, called Meta Platforms (NASDAQ: META) his top large-cap long idea on July 22. He believes advertising demand and ad improvements driven by artificial intelligence (AI) will drive continued revenue growth, and that the company is undervalued currently.
One week later, Meta released an underwhelming earnings report, and its share price dropped about 10% in a single day. Mahaney reiterated that he expects the stock to outperform, but he lowered his price target from $930 to $820.
Details
Is the social media giant an undervalued megacap or a value trap? Let's take a closer look at why Mahaney likes it and whether his thesis still holds.
Source
Originally published at www.fool.com.